Key Financials Key Operating Results

RM million Q1

2019

Q1

2018

Change %

Revenue 525 434 21

Operating profit 71 65 9

Taxation 17 15 13

Profit after tax 53 49 8

Net cash from operating activities

94 109 -14

RM million

Q1

2019

Q1

2018

Change %

Total assets 921 752 22

Total liabilities 497 343 44

Reserves 273 258 5

Total equity 424 409 3

Capex 314 259 21

Financial Ratios Q1

2019

Q1

2018

Operating working capital % of revenue 24.07 32.97

EBITDA margin 16.09 17.64

Return on equity 16.84 15.98

Earnings per share (sen) 17.48 16.14

Net assets per share (RM) 1.40 1.35

EBITDA: Earnings before interest, tax, depreciation and amortisation

Investor Factsheet

May 2019

Portfolio of Iconic International Brands

11 brands and 47 SKUs

Vision

To be the clear leader with our people, brands and performance

Leading Brewer in Malaysia

With history dating back to 1964 Listed on Bursa Malaysia since 1965

Mission

Inspire people with exciting brands and outstanding services as One Strong Team

Part of the HEINEKEN Company

51% owned by HEINEKEN NV 49% by public

Sustainability embedded

in business strategy and priority

Values

Passion for Quality Enjoyment of Life Respect for People and for the Planet

1 brewery and 13 sales offices throughout Malaysia

First in Malaysia to receive the Hazard Analysis Critical Control Point Certification from the Ministry of Health since 2002.

Received the ISO Certification since 1995

Q1 / 2019 Key Highlights

Revenue registered a solid growth of 21% driven by higher sales from effective execution of commercial campaigns during Chinese New Year 2019 and pre-price adjustment on 1 April 2019.

Operating profit rose 9% on the back of higher revenue and efficient management of commercial spent.

Operating cash flow was 14% lower mainly due to the timing difference of working capital movement resulted from the higher production activities in Q1 2019.

Capex: Continued investments to support supply chain upgrades along with enhancement to digital and IT capabilities

Total equity remained healthy on the back of higher reserves.

EBITDA margin remained healthy underpinned by solid revenue growth and efficient cost management.

Earnings per share and net assets per share remained resilient at 17 sen per share and RM1.40 per share respectively.

Other updates

With effect from 1 January 2019, the Group adopted MFRS 16: Leases using a modified retrospective approach. The adoption of MFRS has no significant impact on the assets and liabilities recognised in the current balance sheet.

2019 Outlook

Leveraging on the solid growth in Q1, we will continue to sharpen our focus on executing the right strategies on our inspirational brands and driving operational efficiency to drive value creation for our stakeholders and deliver satisfactory performance.

The Group acknowledges the good efforts of the Government and the Royal Malaysian Customs Department in intensifying enforcement to clamp down on illicit alcohol as this represents revenue leakages to both the Government as well as the beer industry. There have been positive results from enforcement actions and the Group will continue to work closely with relevant authorities in support of their initiatives to address this issue. The presence of contraband products in the market remains a key concern for the industry.

Top 10 Shareholders as of 15 May 2019 Analysis by Category as of 15 May 2019

Sustainability

We pursue an increasingly holistic approach to sustainability, focusing on the entire value chain From Barley to Bar through our Brewing a Better World (BaBW) sustainability strategy. Our initiatives support 10 out of the 17 United Nations Sustainable Development Goals.

Our Value Chain Our sustainability strategy is aligned with HEINEKEN Global’s approach. Our raw materials, mainly malted barley and hops, are imported from HEINEKEN pre-approved suppliers in Europe and Australia while our agricultural sourcing practices are aligned with the HEINEKEN Supplier Code. In HEINEKEN Malaysia, the commitments and responsibilities begin from the brewing process and end with the consumer. We aim to report our sustainability performance annually to create transparency in our actions and to be accountable to our valued stakeholders.

Our Focus Areas

Name of shareholder

Number of shares held

%

1. GAPL Pte Ltd 154,069,900 51

2. Citigroup Nominees (Tempatan) Sdn Bhd Great Eastern Life Assurance (Malaysia) Berhad (PAR 1)

8,766,880 2.90

3. DB (Malaysia) Nominee (Asing) Sdn Bhd The Bank of New York Mellon for Virtus Kar International Small Cap Fund

4,415,700 1.46

4. UOB Kay Hian Nominees (Asing) Sdn Bhd Exempt An for UOB Kay Hian Pte Ltd (A/C Clients)

3,548,907 1.17

5. Cartabank Nominees (Asing) Sdn Bhd SSBT Fund Mngn for Mawer Global Small Cap Fund

3,364,717 1.11

6. HSBC Nominees (Asing) Sdn Bhd JPMBL SA for Stichting Depositary APG Emerging Markets Equity Pool

3,219,700 1.06

7. CIMB Group Nominees (Asing) Sdn Bhd Exempt An for DBS Bank Ltd (SFS)

2,946,500 0.98

8. Key Development Sdn Berhad 2,427,000 0.80

9. DB (Malaysia) Nominee (Asing) Sdn Bhd State Street London Fund LYFB for BMO LGM Global Emerging Markets Smaller Companies Fund (BMO INV II IRL)

2,288,600 0.75

10. CIMB Group Nominees (Asing) Sdn Bhd Exempt An for DBS Bank Ltd (SFS-PB)

2,167,100 0.72

Q1 2019 Key Initiatives

Focus Area 2020 Commitments

Progress for Q1

Every Drop: Protecting Water Resources

Reduce water consumption in production to 3.5 hl/hl 100% of wastewater treated Water stewardship agenda : Water balancing initiatives implemented to achieve Every Drop strategy 2030

On-going water optimisation efforts through regulatory compliance.

Rhombo hexoshield floating cover installed at wastewater plant for odor control and water protection.

Roundtable on wetland cell for rivers to improve water quality completed with multiple stakeholders.

Water thimble data collection from 4 selected communities on-going.

Reforestation effort at Raja Musa Forest Reserve: effective flood & draught mitigation with over 200 million litres of water can be stored annually.

Drop the C: Reducing CO₂ emissions

Reduce CO₂ emissions from production by 40% as from 2008 100% green refrigerators

Energy optimisation efforts in progress through regulatory compliance and energy and carbon emission management.

644 units of green refrigerators

purchased for the whole year.

Sourcing sustainably

All suppliers pledged to comply with HEINEKEN Supplier Code

100% achieved since February 2019.

Advocating responsible consumption

Report publicly on a measurable partnership aimed at addressing alcohol misuse

To identify and work with the right partners to address alcohol misuse.

Promoting Health & Safety

Life Saving Rules action plans fully implemented

Road Safety Day campaign for employees held in March 2019, interactive simulations and various activities related to road safety were among the focus of the campaign.

Growing with communities

To raise awareness on importance of river and water conservation through the W.A.T.E.R Project To enhance the standard and quality of English language teaching in primary schools

W.A.T.E.R Project Employee engagement on Every

Drop strategy. Distributed water thimbles to all

employees. Engagement with local communities

(River clean-up, open classroom and river rangers programmes) on-going.

Engagement with social media followers on water conservation on-going.

English Enrichment Training Programme (EETP) Organised 8th EETP 4 days training

for mentors and teachers in March 2019.

54 teachers from 46 rural schools are now part of our programme until October 2019 under the guidance of Early Childhood Education and English Language experts.

Number of shareholders

Number of shares held

%

Malaysian 10,689 79,760,438 26.4

Foreigner 996 222,337,562 73.6

This factsheet is to be read in conjunction with the announcement to Bursa Malaysia and all other disclosures related to the Q1 2019 financial results of HEINEKEN Malaysia.

Commercial Activation

Tiger Beer Uncage New Beginnings

2019 Chinese New Year (CNY) Campaign

The lunar year of the Pig was welcomed with an exciting nationwide consumer promotion. Themed Uncage New Beginnings, the campaign invited consumers to toast to a fresh start as they usher in the new year with HEINEKEN Malaysia’s portfolio of brews, with thousands of ringgit in angpows, limited edition Tiger Beer Mahjong sets, exclusive Tiger Beer Prosperity bowl sets and so many other branded merchandise up for grabs. With a sharp focus and strengthened commercial execution, the CNY campaign led by Tiger Beer contributed to the improved top line in Q1 2019.

Guinness St. Patrick’s Festival

In March 2019, Guinness, the World’s No. 1 Stout, organised a vibrant two-day festival filled with live performances, fun and games, Guinness-infused food, and cold, creamy Guinness Stout, creating the largest “Sláinte” in Malaysia. Across the country, Guinness fans celebrated all things Irish and enjoyed their favourite brew with Guinness promotions that lasted the month of March. As a core brand of our portfolio of world class brands, Guinness continues to play an important role in our premium category growth.

Apple Fox “Why The Fox Not”

Can Exchange Promotion

To drive further trials in the fast growing cider category, Apple Fox Cider’s campaign in Q1 featured a promotion that enabled consumers to exchange an empty can/bottle of any cider brand for a can of Apple Fox Cider. Held at over 60 participating outlets nationwide, more than 10,000 cans of Apple Fox Cider were redeemed during the period. The cider category continues to attract new consumers and penetrate new occasions, and as part of our innovation strategy, extends our portfolio to cater to the evolving tastes and needs of the modern consumer.

Disclaimer

This presentation contains forward-looking statements that are not historical facts with regard to the financial position, trends for future periods, and results of HEINEKEN Malaysia’s activities. These forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed in the forward-looking statements as originally made.

Many of these risks and uncertainties relate to factors that are beyond HEINEKEN Malaysia’s ability to control or estimate precisely, such as, but not be limited to, future industry, market and economic conditions, the behaviour of other market participants, changes in consumer preferences, costs of raw materials, interest rate and foreign exchange fluctuations, change in tax rates, changes in law, technological advances, access to financing, international and domestic economic conditions, actions of government, regulators and weather conditions.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. HEINEKEN Malaysia does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.

None of the HEINEKEN Malaysia, or any of their respective directors, employees, representatives or agents shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Nothing in this presentation (including any opinions expressed) should be regarded as investment advice being provided by HEINEKEN Malaysia or a solicitation or a recommendation that any particular investor should invest, buy, sell, hold or otherwise deal in any share or business of HEINEKEN Malaysia.