Heineken Holding (HEIO) investor relations material

Strategic priorities and future plans

• EverGreen 2030 strategy focuses on accelerating growth, productivity, capital efficiency, and future-proofing the organization through digital transformation and sustainability.

• Differentiated approach across 17 core markets, with tailored strategies by market archetype, drives investment in markets responsible for about 90% of growth.

• Portfolio streamlined to five global brands and 25 local power brands, receiving over 80% of marketing investment, while less impactful brands are sunsetted.

• Four key shifts: advantaged & differentiated footprint, shaping the category, fewer/better/bigger brands, and scaling execution with AI and a new Digital Backbone.

• Integration of AI and digital systems enables agility, harmonization, and cost-effectiveness across the organization.

Financial guidance and value creation

• Mid-term ambition is mid-single-digit net revenue organic growth, with operating profit and EPS growth outpacing revenue.

• Cash conversion targeted to rise from below 80% to above 90%, supported by improved working capital and normalized CapEx at 7–8% of revenue.

• €400–500 million in annual gross savings expected through productivity initiatives leveraging global scale, agile supply networks, business services, procurement excellence, and digital acceleration.

• Marketing and selling expenses will remain above 10% of revenue, with greater focus and efficiency, especially through AI-enabled Freddy AI agency.

• Capital allocation priorities: invest in growth, maintain net debt/EBITDA below 2.5x, consistent dividend policy with 30–40% payout, and value-enhancing M&A and share buybacks.

Business developments and operational changes

• Digital transformation is accelerating, with modular, cloud-based systems replacing fragmented ERPs and enabling scalable AI solutions.

• Strategic acquisitions and divestments have strengthened the footprint, with recent moves in Central America, India, and Southern Africa.

• Sustainability targets recalibrated for technical and financial viability, including Net Zero in Scope 1 & 2 by 2030, water usage below 2.6 hl/hl, and 40% women in senior management.

• Organizational model shifts from a decentralized structure to a more focused, differentiated approach, with clear resource allocation and performance expectations by market role.

• Performance culture sharpened with new incentives, leadership renewal, and intensified talent management, including global graduate programs and faster talent progression.