• Total volume declined 1.2%, with consolidated volume down 2.1%, and licensed volume up 17.8%.
• Heineken® volume grew 2.7%, global brands volume grew 1.9%.
• Net revenue grew 1.6%, net revenue per hectolitre up 3.8%.
• Over 60% of our markets, including over 80% of our priority growth markets gaining or holding share.
• Marketing and selling expenses expanded to 9.9% of net revenue.

Profitability: Strong productivity gains enabling margin expansion 

• Gross savings in excess of €500 million, with an increased flow-through to profit.
• Operating profit grew 4.4% with operating profit margin expanding 41 bps to 15.2%.
• Diluted Earnings per Share (EPS) of €4.78, up 3.6% (2024: €4.89). 

Capital Efficiency: Another year of solid cash flow generation, with improved ROIC 

• Free Operating Cash Flow of €2.6 billion, translating into a cash conversion ratio of 87%.
• Return on Invested Capital (ROIC) absolute increase of 57 bps to 22.7%, incl goodwill & intangibles up 21 bps to 9.4%.
• Completed first tranche of the €1.5 billion share buyback programme, second €750 million tranche to start shortly.
• Dividend of €1.90 per share proposed. Dividend payout policy to be expanded to the range of 30% to 50%. 

2026: Accelerating the disciplined execution of EverGreen 2030, integrating FIFCO 

• Increasing investment in growth focused on global brands, faster innovation and sharper execution.
• Accelerating productivity at scale to unlock significant savings, reducing 5,000 to 6,000 roles over next two years.
• Integrating FIFCO beverage and retail businesses in Central America, expected to be immediately accretive to EPS.
• Anticipating FY2026 operating profit to grow in the range of 2% to 6%.

KEY HIGHLIGHTS

• Revenue €35,955 million 
• Net revenue (beia) 5.0% organic growth, per hectolitre 3.5% 
• Beer volume 1.6% organic growth; Heineken® volume up 8.8% 
• Operating profit €3,517 million; operating profit (beia) 8.3% organic growth 
• Operating profit (beia) margin 15.1%, up 40 bps 
• Net profit €978 million; net profit (beia) 7.3% organic growth 
• Diluted EPS (beia) €4.89 
• Free Operating Cash Flow €3,058 million 
• HEINEKEN to launch two-year €1.5 billion share buyback programme 
• Full year 2025 outlook: 4% to 8% operating profit (beia) organic growth

Financial Summary¹

_{¹Consolidated figures are used throughout this report, unless otherwise stated. Tables will not always cast due to rounding. Please refer to the Glossary for an explanation  of non-GAAP measures and other terms. Page 27 includes a reconciliation versus IFRS metrics. These non-GAAP measures are included in internal management reports  that are reviewed by the Executive Board of HEINEKEN, as management believes that this measurement is the most relevant in evaluating the results and in performance  management. Full year numbers are audited. 
²Organic growth shown, except for Diluted EPS (beia), which is total growth. 
³Includes acquisitions and excludes disposals on a 12-month pro-forma basis.}

Today our CEO, Jean-François van Boxmeer talked to CNBC live about our 2020 Q1 Trading Update. Watch the video here.

KEY HIGHLIGHTS

• Beer volume -2.1% organically for the quarter.
• Heineken® volume +5.0% in the quarter.
• March volume significantly impacted by Covid-19.

Jean-François van Boxmeer, Chairman of the Executive Board / CEO, commented:

"During the first quarter of 2020, the Covid-19 outbreak has evolved into a pandemic. By now, most countries where we operate have reacted by taking far-reaching containment measures such as restrictions of movement for populations and outlet closures, sometimes combined with the mandatory lockdown of production facilities. Our performance for the first quarter reflects the initial impact of those measures, and volumes in March were obviously heavily affected.

In these very trying times, our thoughts remain with all those affected by Covid-19 and the people working tirelessly to care for them. In addition to our actions with local communities which are now approaching a value of €5 million, on April 8th we announced our decision to donate €15 million to the International Red Cross and I am pleased to report that the de Carvalho-Heineken family together with their holding company will donate €10 million to eight charities providing support to communities most affected and fragile, to medical health systems and to medical research.

HEINEKEN has entered the crisis with strong brands and a strong balance sheet. In the past few weeks we have taken necessary measures to reduce our costs, secure additional financing and adapt to the fast changes we see in our markets.

I am proud of the leadership, the commitment and the courage of our teams and I fully trust their talent, creativity and energy to steer HEINEKEN through this unprecedented situation and protect as well as develop our brands and businesses."

FIRST QUARTER VOLUME BREAKDOWN

^{1 Refer to the Definitions section for an explanation of organic growth and volume metrics.}  

FIRST QUARTER VOLUME REVIEW

With the spread of the Covid-19 crisis to all geographies, multiple countries have taken far-reaching containment measures such as restrictions of movement for populations and outlet closures, sometimes combined with the mandatory lockdown of production facilities. This is having a significant impact on HEINEKEN's markets and on its business in 2020 and is already visible in the volume reported for the first quarter. In most cases these measures were implemented in the last weeks of March. By exception, specific reference is made to the volume performance in March per Region to improve transparency.

Heineken® brand

• Heineken® volume grew by 5.0% in the quarter, with a decline of 2.4% in March.
• Volume grew double digit in Brazil, China, Mexico, the UK, Poland, Mozambique, Ivory Coast and South Korea among other markets.
• Heineken® 0.0 was introduced in Vietnam in March and is now present in 58 countries.

Africa, Middle East & Eastern Europe

• Beer volume declined organically by 6.9% in the quarter, with a decline of 14.5% in March.
• In Nigeria, beer volume was broadly flat in the quarter and declined high-single digit in March, following a price increase in February and the ban on distribution of alcoholic beverages late March. The alcohol ban is applicable in some states where we continue to sell non-alcoholic malt drinks.
• In South Africa, total consolidated volume declined in the low-twenties in the quarter due to destocking from last year and the ban on sales, production and distribution of alcoholic beverages starting the last week of March. Total consolidated volume declined in the mid-twenties in March.
• In Russia, beer volume declined in the mid-teens due to destocking relative to last year.
• In Ethiopia, beer volume declined in the mid-teens, following a steep price increase in mid-February to offset an increase in excise duties.
• In Egypt, beer volume declined in the low-teens in the quarter and by about one half in March following a drop in tourism.
• In the DRC, beer volume declined by low-single digit due to a decline in the mid-teens in March.

Americas

• Beer volume declined organically by 2.5% in the quarter, with a decline of 13.8% in March.
• In Brazil, beer volume declined mid-single digit. Our premium and mainstream portfolios grew double digit, led by Heineken® growing by more than 50%. The economy portfolio declined in the mid-twenties. In March, beer volume declined in the mid-twenties. Non-beer volume declined by one-third due to the de-listing of a low-margin brand in some regions last year.
• In Mexico, beer volume increased low-single digit. Our premium portfolio increased double digit, led by Heineken® and Amstel Ultra. Following government orders, our breweries have been suspended for the month of April. At that moment we estimate our customers held 2 to 3 weeks of inventory.
• In the USA, beer volume declined mid-single digit, with Heineken® growing low-single digit driven by Heineken® 0.0. Lagunitas declined high-single digit. Together with our distributors, we held inventory to supply around two months of our Mexican brands portfolio at the end of March.

Asia Pacific

• Beer volume grew organically by 4.4% despite a decline of 10.6% in March.
• In Vietnam, beer volume grew in the low-teens, underpinned by the continuing expansion of Tiger into secondary cities and rural areas. We launched Heineken® 0.0 and Bia Viet, a new national brand. In March beer volume declined mid-single digit.
• In Indonesia, beer volume declined in the mid-teens due to a drop in tourism in Bali and on-trade restrictions to contain the outbreak.
• In Cambodia, beer volume increased high-single digit driven by our local brand Anchor.
• In Malaysia, beer volume declined mid-single digit in the quarter and by more than half in March, following the suspension of brewery operations under the government's Movement Control Order.

Europe

• Beer volume declined organically by 1.4% in the quarter, with a decline of 15.3% in March. Third party volume declined 17.8% in the quarter and 49.2% in March as on-trade outlets closed impacting our wholesale operations.
• In Italy, beer volume declined by low-single digit in the quarter. Most of the month of March was under lockdown and beer volume declined by one-third, with volume to on-trade customers declining by three-quarters and volume to off-trade customers up low-single digit.
• In Spain, beer volume declined mid-single digit in the quarter. In March, total volume declined around one-quarter, with volume to on-trade customers down by almost half and volume to off-trade customers up in the low-teens.
• In the UK, total consolidated volume was down mid-single digit for the quarter and in March, due to record rains in February and the lockdown in late March. Our pub estate has been closed since the last week of March.
• In France, beer volume was up low-single digit. During March, volume declined mid-single digit, as the decline in volume to on-trade customers of close to a half was partially offset by the high-single digit volume growth to off-trade customers.
• In Poland, beer volume was up high-single digit driven by the mainstream and premium portfolios and a return to normal stock levels at our largest distributor. In March, volume declined high-single digit.
• In the Netherlands, beer volume was down mid-single digit, with a decline in the mid-teens in March.

HEALTH AND SAFETY OF EMPLOYEES

During these trying times, HEINEKEN has set as first priority the health and safety of its people. HEINEKEN ensures that employees working in production and distribution follow strict hygiene and social distancing guidelines and receive support to do their jobs safely.

In order to provide security to its employees, HEINEKEN has committed that until the end of 2020, it will not carry out structural layoffs, as a consequence of Covid-19. As a message of solidarity with the company and the employees who are affected by this crisis, the Executive Board and Executive Team have also collectively agreed to reduce their base salary by 20% between May and December 2020.

DONATIONS

In addition to the actions with local communities which are now approaching a value of €5 million, on April 8 HEINEKEN announced a donation of €15 million to support the International Federation of Red Cross and Red Crescent Societies (IFRC) relief efforts for the most vulnerable people affected by Covid-19, in particular in Africa, Asia and Latin America.

Today, HEINEKEN is pleased to report that the de Carvalho-Heineken family together with their holding company have decided to donate €10 million to eight charities supporting the Covid-19 relief efforts, four in the Netherlands and four international. These organisations cover a number of different needs, from support to affected communities to support of medical health systems and medical research.

BUSINESS IMPACT AND MITIGATING ACTIONS

The initial impact of the Covid-19 crisis is visible in the volume performance of this quarter and is expected to worsen in the second quarter of 2020. The second half of the year is also expected to be impacted, as lockdowns may be lifted but the impact on the economy is likely to remain. Our results in 2020 will be impacted by lower volumes and other effects, including:

• A significant risk of negative transactional and translational currency impacts due to the devaluation of emerging markets currencies versus the US dollar and the Euro.
• The increased risks on credit losses from customers, business continuity of small suppliers, impairments and non-effective hedge contracts.

Since the beginning, crisis management teams have been in place at a global, regional and local level, to ensure a coordinated response in regards to the health & safety of our employees, business continuity and the implementation of mitigating actions.

All discretionary expenses are being reduced. In particular, international travel, corporate events and hiring for all positions have been suspended. All non-committed CAPEX has also been suspended, unless absolutely necessary for the immediate business continuity or safety. Projects and technology upgrade programmes are being temporarily paused or scaled down and will be revaluated. Furthermore, bonuses for 2020 will be cancelled for Senior Managers, including the Executive Board and the Executive Team.

Operating companies are reducing and reallocating marketing expenses and continuously assessing effectiveness under the current environment. Consumer communication is being adapted to support activities that help on-trade customers and reflect social distancing.

Teams are quickly reacting to business changes. Service levels to modern retailers have increased, focusing on key SKUs and shelf replenishment, including outside-store hours service and direct store delivery. Business-to-consumer initiatives are accelerated to capture the growth of e-commerce channels.

The lack of visibility on the end date of the Covid-19 pandemic and the duration of its impact on the economy has led HEINEKEN to withdraw all guidance for 2020.

FINANCING UPDATE

HEINEKEN entered the crisis with a strong balance sheet and an undrawn committed revolving credit facility of €3.5 billion maturing in 2024. There are no financial covenants in the outstanding debt. In recent weeks, HEINEKEN has successfully secured additional financing by issuing new bonds.

• On 18 March 2020, Heineken N.V. placed CHF 100 million of 5-year Notes with a coupon of 0.6375% privately.
• On 25 March 2020, HEINEKEN placed €600 million of 5-year Notes with a coupon of 1.625% and €800 million of 10-year Notes with a coupon of 2.25%. The notes were issued under the Company's Euro Medium Term Note Programme and are listed on the Luxembourg Stock Exchange. The proceeds from the Notes issuance will be used for general corporate purposes. The maturity dates of the Notes are 30 March 2025 and 30 March 2030.

HEINEKEN is well prepared to meet its financial commitments, including the €1 billion bond maturing on 4 August 2020 and the final dividend for 2019 corresponding to €1.04 per share on 7 May 2020, subject to the approval of the Annual General Meeting on 23 April 2020.

HEINEKEN will deviate from its dividend policy and will not pay an interim dividend following its half year results in August 2020.

REPORTED NET PROFIT

Reported net profit for the first three months of 2020 was €94 million (2019: €299 million), impacted by the volume drop in March due to Covid-19 and limited benefit from the mitigation actions.

TRANSLATIONAL CURRENCY UPDATE

HEINEKEN regularly provides an update of translational currency impacts using its latest estimates available on operating profit (beia) and net profit (beia) for the full year in local currencies and the spot rates close to the date of the publication. Since the latest update on 12 February 2020 many currencies have devaluated significantly versus the Euro, especially the Mexican Peso, Brazilian Real and Indonesian Rupiah. However, given the uncertainty in profit estimations for this year it is not possible to provide a reliable estimate of the translational currency impact.

With the spread of the Covid-19 crisis to all geographies, multiple countries have taken far-reaching containment measures such as restrictions of movement for populations and outlet closures, sometimes combined with the mandatory lockdown of production facilities. This constitutes a major negative macro-economic development and as such it is having a significant impact on HEINEKEN’s markets and on its business in 2020.

In these very trying times, HEINEKEN’s priority is to ensure the health and welfare of its employees, customers, and business partners. All HEINEKEN teams are mobilised to enable the company to face this unprecedented crisis in the best possible way, and to protect the long-term potential of its brands and businesses.

For the first quarter of 2020, HEINEKEN expects to announce a total consolidated volume decrease of around -4% organically with beer volume around -2%. The impact is expected to worsen in the second quarter. HEINEKEN has entered the crisis with a strong balance sheet as well as undrawn committed credit facilities and has successfully secured additional financing on the debt capital market in recent weeks. HEINEKEN will provide more information on its mitigating actions in its 2020 first quarter trading update on 22 April. In any case, the lack of visibility on the end date of the Covid-19 pandemic and the duration of its impact on the economy leads HEINEKEN to withdraw all guidance for 2020.

• 2019 detailed business review and financial statements.
• Insights about the Heineken® brand, low- and no-alcohol drinks, international brands portfolio, craft and cider brands.
• Connect in a digital world, a new business priority for the company, using the opportunities provided by digitalisation to connect with consumers and customers. 
• A detailed update on Brewing a Better World, the company’s global sustainability strategy which is part of HEINEKEN’s five business priorities, including 2019 progress, targets and more than 20 case studies:
  • 49% decrease in carbon emissions from production since 2008.
  • 33% decrease in water consumption in our breweries since 2008.
  • 39% reduction in accident frequency since 2015.
  • 95% of markets where the company sells and advertises Heineken® allocated 10%, or more, of Heineken® media spend to responsible consumption campaigns.

The Annual Report 2019 is published on the company’s new global website. It incorporates the latest technologies and design, enabling data-driven communications, and better connecting with stakeholders.

Press enquiries

Tim van der Zanden / Michael Fuchs
E-mail: pressoffice@heineken.com
Tel: +31-20-5239-355

Investor and analyst enquiries

Federico Castillo Martinez / Janine Ackermann / Robin Achten
E-mail: investors@heineken.com
Tel: +31-20-5239-590

• Net revenue (beia) organic growth +5.6%; net revenue (beia) per hectolitre +3.3%
• Consolidated beer volume +3.1%
• Heineken® volume +8.3%, best performance in over a decade
• Operating profit (beia) organic growth +3.9%
• Operating profit (beia) margin 16.8% (-12 bps)
• Net profit (beia) €2,517 million, +4.3% organically
• Diluted EPS (beia) €4.38 (2018: €4.18).

CEO STATEMENT

Jean-François van Boxmeer, Chairman of the Executive Board / CEO, commented:

"In 2019, we delivered another year of superior top-line growth, with continued strong performance in the second half. Growth was well balanced with beer volume up 3.1% and revenue per hectolitre up 3.3%, driven by robust pricing and focus on premiumisation. The Heineken® brand growth accelerated to 8.3%, with more than 40 countries delivering double digit growth. The successful roll-out of Heineken® 0.0 continued and it is now available in 57 markets.

Our strategy continues to be growth oriented with an ever-increasing emphasis on the sustainability of this growth, both socially and environmentally. Over the past decade, we have lowered our water usage by almost a third to 3.4 hectolitres of water per hectolitre produced, ahead of our 2020 target. We increased the proportion of renewable energy in production to 19%. In more than 60 markets, we spent over 10% of Heineken® media budgets on responsible consumption awareness campaigns.

We closed the year with an operating profit (beia) organic growth of 3.9%. In a context of increased input costs, we have continued to work on the efficiency of our operations whilst steadily investing behind our brands, our sustainability agenda and our digital transformation.

Looking ahead to 2020, we expect our operating profit (beia) to grow by mid-single digit on an organic basis, barring major negative macro economic and political developments."

FINANCIAL SUMMARY¹

_{¹ 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. Last year figures restated for IAS 37. Please refer to page 24 for more details.² 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.³ Includes acquisitions and excludes disposals on a 12 month pro-forma basis and includes the first time impact of IFRS 16.}

FULL YEAR 2020 OUTLOOK STATEMENT

For 2020, we anticipate our business to deliver:

• A superior top-line growth driven by volume, price and premiumisation
• A low-single digit increase of input costs per hectolitre, with the benefit of lower prices in some commodities largely offset by transactional currency headwinds
• Continued cost management initiatives and productivity improvements to fuel investment behind our brands, innovation, e-commerce platforms, technology upgrades and sustainability programmes.

As a result, we currently expect operating profit (beia) to grow by mid-single digit on an organic basis, barring major negative macro economic or political developments. In particular it is at this stage not possible to assess the extent and duration of the impact of Coronavirus on the economy and on our business.

We also anticipate:

• An average interest rate (beia) broadly in line with 2019 (2019: 2.9%)
• An effective tax rate (beia) broadly in line with 2019 (2019: 27.6%)
• Capital expenditure related to property, plant and equipment of around €2 billion (2019: €1.9 billion).

OPERATIONAL REVIEW

Top-line performance continued to be strong in second part of 2019, with a good balance between price mix and volume growth. Net revenue per hectolitre (beia) grew in all regions on a constant geographic basis, driven by pricing and premiumisation.

Net revenue (beia) grew 5.6% organically, supported by a 3.3% increase in net revenue (beia) per hectolitre and a 2.2% increase in total consolidated volumes. The underlying price mix on a constant geographic basis was up 3.4%. In the second half of the year net revenue (beia) increased 5.7% (1H19: 5.6%), with total consolidated volume growth of 2.0% (1H19: 2.5%), net revenue (beia) per hectolitre up 3.6% (1H19: 3.0%) and price mix on a constant geographic basis of 3.2% (1H19: 3.5%).

Consolidated beer volume grew 3.1% organically for the full year. The fourth quarter closed the year strongly with 4.1% growth, benefiting from double-digit growth in Brazil, Vietnam and Cambodia. Premium volumes increased high-single digit with strong growth across all regions and continued positive momentum of Heineken®.

Heineken® volume growth accelerated in the fourth quarter to 12.0% to close the year with 8.3% growth, the best in a decade. The brand grew across all regions with double digit growth in over 40 markets including Brazil, Mexico, South Africa, Nigeria, the UK, Romania and Germany. Brazil is now the largest market for Heineken® globally and with the addition of the UK and Nigeria, now 12 markets sell more than one million hectolitres of the brand. The successful roll-out of Heineken® 0.0 continues and it is now available in 57 markets.

The international brand portfolio grew high-single digit, driven by the double digit growth of Tiger and Amstel. Tiger performed strongly in Vietnam, Cambodia and Malaysia. Amstel grew strongly in Brazil, Mexico, Russia, South Africa and the UK.

Craft volume grew mid-single digit to 5.6 million hectolitres with a double-digit expansion in Europe compensating for lower volume in the Americas. Strong performance from craft propositions in Italy, France and Spain continued. Lagunitas is now available in more than 35 markets with local production in the Netherlands and Brazil.

Cider volume was stable at 5.6 million hectolitres (2018: 5.6 million). Volume increased double digit outside the UK, with South Africa and Russia in the lead. In the UK, volume declined high-single digit mainly due to a challenging comparable versus last year. We continue to shape cider in new markets with encouraging results in Vietnam and Mexico. Cider is now locally produced in 18 markets.

Low & No-Alcohol (LONO) volume increased high-single digit, delivering 14.1 million hectolitres (2018: 13.1 million). The no-alcohol portfolio grew double digit, driven by Heineken® 0.0, other line extensions of leading brands and beer mixes. The Zero Zone, a dedicated shelf-space in the off-trade for our non-alcoholic portfolio, is being deployed beyond Europe.

In addition to new products and categories, innovation at HEINEKEN further includes draught systems technology. Volume through our proprietary draught systems grew double digit. The Blade, our counter-top draught system for small outlets, is now available in 32 markets with a range of 30 brands.

Recognising the increasing importance of connecting in a digital world with consumers and customers, in 2019 we added a 5th pillar to our strategic priorities:

• Digital business-to-business platforms continue being deployed at speed. At year end 17 markets were operational.
• Beerwulf, our business-to-consumer platform in Europe, continues to gain scale in 11 markets.
• Our new Enterprise Resource Planning system for Asia Pacific, Africa and the Caribbean (BASE), is now live in 16 of our 24 operations in scope, standardising core business processes and making us more agile and efficient.
• In Europe we closed the preparation phase of our technology upgrade programme and will now begin deployment of the first set of capabilities. During 2019 this represented €37 million in expenses.

Operating profit (beia) grew 3.9% organically, driven by strong revenue growth partially offset by input cost inflation and higher investments in global sponsorships, e-commerce and technology upgrades.

BREWING A BETTER WORLD

Brewing a Better World, one of our five strategic priorities, addresses our commitments to promote health and safety in our operations, protect our water resources, reduce CO2 emissions, source sustainably, advocate responsible consumption and grow with the communities where we operate.

Over the past decade, we have lowered our water usage by almost a third to 3.4 hectolitres of water per hectolitre produced and 3.1 hectolitres in water scarce areas in 2019. As we are ahead of our 2020 targets, in March 2019 we introduced our 2030 water ambition 'Every Drop'. Next to continuous improvement in water consumption, we aim to improve the water catchment areas surrounding our production sites. Today, 15 of our breweries in water scarce areas have started water balancing projects, including nature-based solutions like reforestation and wetland restoration.

In 2018 we set out our 'Drop the C' programme to reduce CO2 emissions, with an ambitious target to power our production facilities with 70% renewable thermal and electricity energy by 2030. Thermal energy accounts for nearly 80% of total energy consumption in a brewery. We are at the onset of this journey and reached 19% in 2019.

In 2019 we increased our local sourcing percentage of agricultural supplies in Africa to 44%, although we made progress we have much more to do to reach our ambition of 60%.

We spent over 10% of Heineken® media budgets on “When You Drive Never Drink” and other responsible consumption awareness campaigns in more than 60 markets.

For more details on our Brewing a Better World programs and definitions please refer to our 2019 Annual Report.

NET PROFIT

Net profit (beia) increased 4.3% organically to €2,517 million (2018: 2,385 million).

The impact of exceptional items and amortisation of acquisition-related intangibles (eia) on net profit was €351 million (2018: €472 million).

Net profit after exceptional items and amortisation of acquisition-related intangibles was €2,166 million (2018: €1,913 million).

TOTAL DIVIDEND FOR 2019

The Heineken N.V. dividend policy is to pay out a ratio of 30% to 40% of full year net profit (beia). For 2019, payment of a total cash dividend of €1.68 per share (2018: €1.60) will be proposed to the Annual General Meeting on 23 April 2020 ("2020 AGM"). This represents an increase of 5.0% versus 2018, translating into a 38.4% payout. If approved, a final dividend of €1.04 per share will be paid on 7 May 2020, as an interim dividend of €0.64 per share was paid on 8 August 2019. The payment will be subject to a 15% Dutch withholding tax. The ex-final dividend date for Heineken N.V. shares will be 27 April 2020.

TRANSLATIONAL CURRENCY CALCULATED IMPACT

The translational currency impact for 2019 was positive, amounting to €80 million at consolidated operating profit (beia) and €47 million at net profit (beia).

Using spot rates as of 7 February 2020 for the remainder of this year, the calculated positive currency translational impact would be approximately €55 million at consolidated operating profit (beia), and €30 million at net profit (beia).

EXECUTIVE BOARD COMPOSITION

Following his successful 15 year leadership of the Company, Jean-François van Boxmeer will hand over his responsibilities as Chairman of the Executive Board and CEO of Heineken N.V. to Dolf van den Brink on 1 June 2020. The Supervisory Board has announced that it will nominate Dolf van den Brink to be appointed as member of the Executive Board at the 2020 AGM for a period of four years. Dolf van den Brink will, subject to appointment by the 2020 AGM, join Heineken N.V. on 23 April 2020 as member of the Executive Board, and will work alongside Mr. Van Boxmeer to ensure a smooth and effective transition as Chairman of the Executive Board and CEO of Heineken N.V. as of 1 June 2020. For more details please see the press release as issued on 11 February 2020.

SUPERVISORY BOARD COMPOSITION

Mrs. Pamela Mars Wright will have completed her four-year appointment term upon conclusion of the 2020 AGM. A proposal for Mrs. Mars Wright’s reappointment as member of the Supervisory Board of Heineken N.V. for a period of four years shall be submitted to the AGM.

ENQUIRIES

INVESTOR CALENDAR HEINEKEN N.V.

Conference call details

HEINEKEN will host an analyst and investor conference call in relation to its 2019 FY results today at 10:00 CET/ 9:00 GMT. The call will be audio cast live via the company’s 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 specialty beers and ciders. We are 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.We employ over 85,000 employees and operate 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 HEINEKEN's website: www.theHEINEKENcompany.com and follow us on Twitter via @HEINEKENCorp.

Market Abuse RegulationThis press release may contain price-sensitive 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.

2018 FULL YEAR BEIA METRICS (RESTATED FOR IAS 37)¹

HEINEKEN published its half year results on 29 July 2019, including a restatement of its half year 2018 beia financial metrics as well as of the balance sheet as of 31 December 2018 due to changes in accounting policies related to IAS 37. The present announcement includes the impact on the corresponding beia financial metrics for the full year of 2018 due to the restatement for IAS 37. These changes do not impact cash or free operating cash flow. For an explanation of the changed accounting policy on payments relating to contingent liabilities please refer to page 2.

Impact of restatement for IAS 37 on full year 2018 beia metrics

¹ Please refer to the glossary for an explanation of non-GAAP measures

Payments relating to contingent liabilities (IAS 37)
Following the IFRS Interpretations Committee agenda decision in January 2019 regarding tax deposits, HEINEKEN has changed its accounting policy with regards to payments relating to contingent liabilities.

Payments relating to contingent liabilities are now, in accordance with the conceptual framework, recognised as an asset on the balance sheet when it is probable (>50%) that HEINEKEN will recover the payment. Previously, these payments were contingent assets under IAS 37, and recognized if the recovery was virtually certain (>95%). In all other cases, they were accounted for directly in the profit and loss statement, if and when cash was actually recovered.

Significant judgement is applied for identifying and accounting for payments relating to contingent liabilities. The change in accounting policy in relation to estimating the likelihood, determining the timing of potential cash inflows and the recoverability is complex and requires significant judgement.

Glossary

Acquisition-related intangible assets
Acquisition-related intangible assets are assets that HEINEKEN only recognises as part of a purchase price allocation following an acquisition. This includes, among others, brands, customer-related and certain contract-based intangibles.

Beia
Before exceptional items and amortisation of acquisition-related intangible assets.

Earnings per share (EPS)
Basic
Net profit divided by the weighted average number of shares – basic – during the year.
Diluted
Net profit divided by the weighted average number of shares – diluted – during the year.

Eia
Exceptional items and amortisation of acquisition-related intangible assets.

Exceptional items
Items of income and expense of such size, nature or incidence, that in the view of management their disclosure is relevant to explain the performance of HEINEKEN for the period.

Free operating cash flow
This represents the total of cash flow from operating activities and cash flow from operational investing activities.

Net profit
Profit after deduction of non-controlling interests (profit attributable to shareholders of the Company).

Net revenue
Revenue as defined in IFRS 15 (after discounts) minus the excise tax expense for those countries where the excise is borne by HEINEKEN.

Weighted average number of shares
Basic
Weighted average number of outstanding shares.
Diluted
Weighted average number of outstanding shares and the weighted average number of ordinary shares that would be issued on conversion of the dilutive potential ordinary shares into ordinary shares as a result of HEINEKEN's share-based payment plans.

ENQUIRIES

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. We are 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.
We employ over 85,000 employees and operate 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 HEINEKEN's website: www.theHEINEKENcompany.com and follow us on Twitter via @HEINEKENCorp.

Disclaimer:
This press release may contain 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.

KEY HIGHLIGHTS

• Beer volume +4.3% organically, with growth in all regions.
• Heineken® volume +8.3% with double digit growth in Africa, Middle East & Eastern Europe and the Americas.

CEO STATEMENT
Jean-François van Boxmeer, Chairman of the Executive Board / CEO, commented:
"We had a positive start to the year with volume growth across all regions despite the later timing of Easter, underlining our continued focus on growth and the breadth of our geographic footprint. The Heineken® brand volume was up 8.3%. Our outlook for 2019 remains unchanged, we anticipate our operating profit (beia) to grow by mid-single digit on an organic basis."

FIRST QUARTER VOLUME BREAKDOWN

Heineken® volume grew by 8.3%. The main markets contributing with double digit growth included Brazil, South Africa, Russia, China, the UK, Nigeria, Mexico, Romania and Germany.

¹Refer to the Definitions section for an explanation of organic growth and updated volume definitions.

REGIONAL REVIEW

Africa, Middle East & Eastern Europe

• Beer volume grew organically by 7.8%.
• In Nigeria, beer volume grew mid-single digit. Last year was affected by some destocking.
• In Russia, beer volume was up double digit, mainly driven by the premium portfolio due to Heineken® and the inclusion of licensed brands Miller Genuine Draft and Staropramen.
• In South Africa, total consolidated volume showed double digit growth, driven by Heineken®, Strongbow and Amstel.
• In Ethiopia, beer volume grew low-single digit in the context of a price increase and social unrest in parts of the country.
• In Egypt, total consolidated volume grew high-single digit, driven by the non-alcoholic beverage portfolio.
• In the DRC, beer volume grew high-single digit with growth across the country and most of the brand portfolio.
• HEINEKEN opened its first brewery in Mozambique in March.

Americas

• Beer volume grew organically by 3.2%.
• In Mexico, beer volume was slightly down, impacted by the later timing of Easter and lower promotional activity. The premium portfolio grew double digit, led by Heineken®.
• In Brazil, beer volume grew double digit, driven by both the premium portfolio led by Heineken®, and the mainstream portfolio led by Amstel and Devassa.
• Beer volume in the USA declined mid-single digit. Heineken® 0.0 was introduced in the quarter.

Asia Pacific

• Beer volume was up organically by 8.2%.
• In Vietnam, beer volume grew high-single digit, driven by Tiger and Larue.
• In Indonesia, beer volume increased low-single digit driven by the low- and no-alcohol portfolio.
• In Cambodia, beer volume grew double digit, driven by Anchor and Tiger.
• In China, beer volume grew mid-single digit, driven by the double digit growth of Heineken®.

Europe

• Despite the later timing of Easter, beer volume grew organically by 1.6% benefiting from better weather conditions across the region.
• In the UK, total consolidated volume was up low-single digit helped by some inventory build-up anticipating Brexit and the re-listing at a large retailer.
• In France, beer volume was up mid-single digit, with double digit growth of Desperados and Affligem.
• In Italy, beer volume grew mid-single digit, with strong double digit growth of Ichnusa.
• In the Netherlands and Spain, beer volume was flat.
• In Poland, beer volume was down mid-single digit following a change in stocking policy at our largest distributor.

REPORTED NET PROFIT

Reported net profit for the first three months of 2019 was €299 million (2018: €260 million).

TRANSLATIONAL CURRENCY UPDATE

Using spot rates as of 17 April 2019 for the remainder of this year, the calculated positive currency translational impact would be approximately €80 million at operating profit level (beia) and €50 million at net profit level (beia).

BREWING A BETTER WORLD

On 19 March 2019, HEINEKEN announced its 2030 'Every Drop' water vision in support of United Nations Sustainable Development Goal 6, dedicated to water protection. Under 'Every Drop', HEINEKEN has defined its commitments on water rebalancing, water circularity and reduction of water usage with focus on water-stressed areas. For more details please visit: www.theHEINEKENcompany.com/Media/Features/Every-Drop-Protecting-Water-Resources.

DEFINITIONS

HEINEKEN has updated its definitions of volume metrics as below. 2018 figures have been restated accordingly:

Brand specific volume (Heineken® Volume, Amstel Volume, etc.)
Brand volume produced and sold by consolidated companies plus 100% of brand volume sold under licence agreements by joint ventures, associates and third parties.

Beer Volume
Beer volume produced and sold by consolidated companies.

Non-Beer Volume
Cider, soft drinks and other non-beer volume produced and sold by consolidated companies.

Third Party Products Volume
Volume of third party products (beer and non-beer) resold by consolidated companies.

Total Consolidated Volume
The sum of Beer Volume, Non-Beer Volume and Third Party Products Volume.

Licensed Beer Volume
100% of volume from HEINEKEN's beer brands sold under licence agreements by joint ventures, associates and third parties.

Group Beer Volume
The sum of Beer Volume, Licensed Beer Volume and attributable share of beer volume from joint ventures and associates.

Organic Growth
Organic growth in volume excludes the effect of consolidation changes.

Volume Metrics: First Quarter 2019*

* HEINEKEN has updated its definitions of volume metrics. For more details please refer to the Definitions section in page 4 of this press release.Due to rounding, this table will not always cast

ENQUIRIES

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. It 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 HEINEKEN's website: www.theHEINEKENcompany.com and follow us on Twitter via @HEINEKENCorp.

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.