HEINEKEN FINANCIAL MARKETS CONFERENCE 2013 MEXICO CITY

Mexico City | December 5-6, 2013 | Heineken NV

MARC BUSAIN Managing Director, Cuauhtémoc Moctezuma

Winning in Mexico!

2

AGENDA

Winning in Mexico!

A SUCCESSFUL ACQUISITION

OVERVIEW OF MEXICAN BEER MARKET

OUR STRATEGY TO WIN

3

CUAUHTÉMOC MOCTEZUMA: A RICH HISTORY IN MEXICO

SCYF Serving consumer inspired brands for over 120 years

1910 1920 1940 1950 1970 1980 1990 2010 1890

FOUNDATION EMPAQUE TECATE MOCTEZUMA HEINEKEN 1890 Foundation of Ice Factory and Cerveza Cuauhtémoc Monterrey, N.L.”

Introduction of Carta Blanca to the national market

1918 Foundation of Sociedad Cuauhtémoc y Famosa, the pioneer institution for Mexican Social Security

Institution preceded Mexico’s IMSS and INFONAVIT

TEC DE MONTERREY 1943 Leading University in Latin America is founded by Don Eugenio Garza Sada

EXPORTS 1973 Exported to the USA since 1973

TECATE LIGHT 1992 Cuauhtémoc Moctezuma launches Tecate Light, the first light beer in Mexico

1920 CM creates “Fábricas de Monterrey” to have its own supplier of packaging materials, cans and bottles

1954 Cervecería Cuauhtémoc acquires Cervecería Tecate in Baja California

1985 Cervecería Cuauhtémoc acquires Cervecería Moctezuma

2010 HEINEKEN acquires FEMSA Cerveza

Heineken® launch in the Mexican market

4

SUCCESSFUL INTEGRATION PROCESS

INTEGRATION PROCESS PLAN

Seamless integration of FEMSA Cerveza into HEINEKEN in 2010 whilst driving ongoing business growth

CULTURAL AWARENESS AS A CRITICAL SUCCESS FACTOR

IMPLEMENTED NEW RTM STRUCTURE

Heineken® LOCAL PRODUCTION

STRONG INVESTMENT BEHIND BRANDS

ROLL-OUT OF CM’S ‘SIX’ BEER ORIENTED RETAIL STORES

5

STRONG DELIVERY OF COST SYNERGIES Expected cumulative cost savings of €320m by end 2016

~€220M OF COST SYNERGIES TO BE GENERATED BY END 2013

ACHIEVED SAVINGS PRIMARILY FROM SUPPLY CHAIN AND ROUTE TO MARKET RECONFIGURATION

CONTRIBUTING ~20% OF HEINEKEN TCM2 GLOBAL SAVINGS IN 1H13

FURTHER OPTIMISING COST BASE: ~€100M ADDITIONAL COST SAVINGS IDENTIFIED

EXPECT TO REALISE APPROX. HALF IN 2014 (PART OF PREVIOUSLY ANNOUNCED TCM2 TARGETED SAVINGS)

BALANCE OF SAVINGS IN 2015 AND 2016

COST SYNERGY PROGRESSION € MILLION

33

220

320

72

57

58

100

6

2010 2013F

CM DELIVERING IMPRESSIVE TOP-LINE AND PROFIT GROWTH

1 Includes domestic beer operations only 2 Includes domestic beer and export operations

Operating profit (beia) margin expansion of 520 basis points since 2010

OPERATING PROFIT (BEIA)1 2010-2013F €M

OPERATING PROFIT (BEIA) MARGIN2

2010-2013F €M

2010 2013F 2010 2013F

CAGR +6%

12.9%

18.1%

REVENUE1

2010-2013F €M

CAGR +21%

7

Mexico 11%

Mexico 11%

Mexico 14%

MEXICO IS HEINEKEN’S LARGEST MARKET

1 Group beer volume and financials based on is consolidated business plus attributable share of joint ventures and associates; 2 Group operating profit (beia) excludes Head Office; Based on 2012FY proforma (including APB from 1 January 2012) Mexico includes both domestic and export operations

HEINEKEN GROUP REVENUE1 (2012)

HEINEKEN GROUP BEER VOLUME1 (2012)

HEINEKEN GROUP OPERATING PROFIT (BEIA)1,2 (2012)

8

CUAUHTÉMOC MOCTEZUMA ORGANIZATION Local management team structure

18,000 EMPLOYEES

5 EXPATS

10 NATIONALITIES

30 MEXICANS EXPATRIATED

3 LOGISTICS AND CUSTOMER SERVICE FRANCISCO GARZA

1 MARKETING LEANDRO BERRONE

2 SALES JOSEP FERRER

4 SUPPLY CHAIN JORGE MEILLÓN

5 HUMAN RESOURCES JAVIER CASTAÑO

6 CORPORATE AFFAIRS ARNULFO TREVIÑO

7 GLOBAL INFORMATION SERVICES CICERO WILLIS

8 FINANCE MARC GOUMANS

CEO MARC BUSAIN

9

AGENDA

Winning in Mexico!

A SUCCESSFUL ACQUISITION

OVERVIEW OF MEXICAN BEER MARKET OUR STRATEGY TO WIN

10

WELCOME TO MÉXICO!

POPULATION: 115 MILLION

POSITIVE ECONOMIC OUTLOOK

GROWING MIDDLE CLASS

4TH LARGEST BEER PROFIT POOL

+1 MILLION NEW CONSUMERS PER YEAR

#1 BEER EXPORTER IN THE WORLD

Attractive growth prospects for HEINEKEN

11

591

699

393

639

779

868 883 911

2011 2012 2013F 2014F 2015F 2016F 2017F 2018F

3.9% 3.9%

0.9%

3.5%

4.7% 4.9%

5.2% 5.3%

2011 2012 2013F 2014F 2015F 2016F 2017F 2018F

A POSITIVE ECONOMIC OUTLOOK

MEXICO GDP GROWTH

Source: Harbor International

FORMAL EMPLOYMENT GROWTH ‘000 Number of new employees

An acceleration in economic growth in Mexico to be underpinned by structural reforms

12

0.1

0.7

1.7

3.2

5.2

7.5

9.2

10.2

11.0

10.9

90+

80-89

70-79

60-69

50-59

40-49

30-39

20-29

10-19

0-9

0.1

0.6

1.5

2.8

4.7

6.8

8.2

9.6

11.3

11.4

DYNAMIC DEMOGRAPHICS

POPULATION +18 AND BEER CONSUMPTION

Source: Canadean and CONAPO

POPULATION PYRAMID Millions by age bracket

MALE FEMALE

Source: CONAPO, 2012

65 67 70

73 76

83

52 56

59 58 60 63

2004 2006 2008 2010 2012 2017F

Population +18 (LDA) (Millions) Per Capita (Liters)

By 2017, Mexico will have >7 million new consumers of legal drinking age

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RISING URBANIZATION & AN EMERGING MIDDLE CLASS

Source: INEGI

Demographic and Economic changes signal opportunities to develop the premium segment

MEXICO CITY IS THE SECOND LARGEST CITY IN THE WESTERN HEMISPHERE

11 CITIES WITH >1 MILLION PEOPLE

86% URBANIZATION LEVEL EXPECTED BY 2020 (VS. 61% IN 1980)

PURCHASING POWER AND CONSUMPTION OF MIDDLE CLASS HAS BEEN INCREASING OVER THE LAST 10 YEARS

TIJUANA 2m population

MONTERREY 4m population

GUADALAJARA 4.5m population

MEXICO CITY 20m population

PUEBLA 3m population 90-100%

80-90% 60-80% 50-60% 30-50%

Urbanization level

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Carbonates 58%

Water 15%

Alcoholic 18%

Non-alcoholic

9%

94%

3% 2% 1%

Beer Spirits Flavoured alcoholic beverages Wines & cider

BEER IS THE ALCOHOLIC BEVERAGE OF CHOICE IN MEXICO

TOTAL BEVERAGE CONSUMPTION DISTRIBUTION

Source: Canadean

Beer represents17% of total beverage consumption and 94% of alcoholic beverage consumption in Mexico 2013F

ALCOHOLIC BEVERAGES DISTRIBUTION 2013F

15

50 52 55

61 64 64

67 71

75 78

82

2000 2002 2004 2006 2008 2010 2012F 2014F 2016F 2018F 2020F

ATTRACTIVE GROWTH PROSPECTS FOR MEXICAN BEER

BEER MARKET PROJECTIONS

Source: Plato

Mexican beer market projected to grow at an annualized rate of 2.6% through to 2020

€7.5BN BEER INDUSTRY VALUE

60K DIRECT EMPLOYMENT

800K INDIRECT EMPLOYMENT

4% OF GOVERNMENT TAX INCOME

>20 MHL EXPORTED

+2.5%

+2.6%

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AGENDA

Winning in Mexico!

A SUCCESSFUL ACQUISITION

OVERVIEW OF MEXICAN BEER MARKET

OUR STRATEGY TO WIN

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CM STRATEGY TO WIN

1 BUILDING A WINNING NATIONAL PORTFOLIO

3 LEVERAGE STRATEGIC CHANNELS TO DRIVE VOLUME AND VALUE

2 CONSOLIDATE OUR SHARE IN STRONGHOLDS WHILST ADVANCING IN SELECTED CHALLENGER MARKETS

Capabilities Cost Leadership Culture Sustainability

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BUILDING A NATIONAL WINNING PORTFOLIO Consolidating our mainstream offering whilst developing premium

TECATE A LARGE AND GROWING BRAND WITH CLEAR LEADERSHIP IN LIGHT SEGMENT

IGNITING ADDITIONAL SOURCES OF GROWTH THROUGH DOS EQUIS AND INDIO

STRENGTHENING REGIONAL MARKET POSITIONS THROUGH INVESTMENTS IN CARTA BLANCA AND SOL

LEADING THE DEVELOPMENT OF THE PREMIUM SEGMENT WITH Heineken®

ECONOMY

BELOW MAINSTREAM

MAINSTREAM

ABOVE MAINSTREAM

PREMIUM

SUPER PREMIUM

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EXCITING POTENTIAL FOR PREMIUM SEGMENT IN MEXICO % SHARE

OF UPSCALE BEER

Source: Canadean

Developing and winning in the premium segment

DOUBLED VOLUME IN SUPER PREMIUM AND DOUBLE DIGIT GROWTH IN ABOVE MAINSTREAM

STRONG INVESTMENT BEHIND Heineken® DELIVERING SOLID GROWTH FOR LONG TERM VALUE

PROMISING START TO STRONGBOW GOLD

STRONG INNOVATION PIPELINE FROM LOCAL / GLOBAL BRAND INITIATIVES

France

Italy

USA

Canada

Brazil

Mexico

India

0 5 10 15 20 25 30 35 40

20

A TARGETED REGIONAL GROWTH STRATEGY

CM MARKET SHARE BY REGION

Source: Canadean

Growing our market share in stronghold regions, whilst advancing in key challenger cities

MEXICO BEER MARKET SHARE

58%

41%

1% >65%

35%-65%

<35%

OTHERS

GRUPO MODELO

Source: Company Information

21

2.3%

6.2%

Total Domestic Challenger Markets

WINNING IN CHALLENGER MARKETS Sustainable market share gains in challenger markets through a strong brand portfolio, quality penetration and a passionate team

CM CHALLENGER MARKETS

STRONG OUTPERFORMANCE IN CHALLENGER MARKETS Volume CAGR (2011-2013F)

Challenger Markets

+2.7x

22

A SEGMENTED CHANNEL APPROACH

Leveraging capabilities in strategic channels to drive volume and value growth

CM CHANNEL SPLIT (2012 VOLUME)

Develop quality numerical distribution

in the traditional off-trade

Win in mixed accounts in the modern and

traditional off-trade

On Premise: Develop premium and drive growth in profitable sub-segments

Deliver growth and value from CM’s SIX beer oriented retail stores

Capture market share leveraging OXXO expansion footprint in CM challenger markets

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5,563 6,374

7,374

8,400

9,543

10,568

2007 2008 2009 2010 2011 2012

STRONG STRATEGIC PARTNERSHIPS Strategic alignment with OXXO enabling brand penetration and growth as retail chain expands nationally

OXXO STORES GROWTH (NO. OF OUTLETS)

BENEFITTING FROM OXXO EXPANSION IN CHALLENGER MARKETS

BUILDING BRANDS

DEVELOP PREMIUM SEGMENT

INCREASED OUTLET PRODUCTIVITY

24

SIX: OUR BEER ORIENTED RETAIL BUSINESS

SIX Beer oriented stores differentiated by service and a fun shopping environment

30-50 SQUARE METERS OFF-PREMISE OUTLETS

CM DETERMINES LOCATION AND FORMAT

BEER IS DESTINATION CATEGORY

LAND IS LEASED; ENTREPRENEURS MANAGE

THE STORE INCENTIVIZED BY COMMISSIONS

FOR BEER AND OTHER KEY CATEGORIES

TYPICAL CONSUMER - MALE 35-45 YEARS OLD;

MONTHLY INCOME OF US$500

25

9,289 9,270

10,225 11,289

2010 2011 2012 2013F

SIX IS A HIGHLY PROFITABLE RETAIL BUSINESS MODEL

SIX: NUMBER OF OUTLETS

A UNIQUE PLATFORM

TO DEVELOP THE BEER

CATEGORY

25% OF OUTLETS ARE LOCATED

IN CENTER AND WEST MEXICO

IN 2013, OTHER KEY

CATEGORIES ALSO

CONTRIBUTED TO INCREASED

PROFITABILITY

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FEDERAL TRADE COMMISSION AGREEMENTS

KEY COMMITMENTS

We are committed to full compliance of the resolution

HOW CUSTOMER AGREEMENTS WORK

1 Open exclusive on-premise accounts to local microbrewers

2 Use a new format of exclusivity agreements for traditional channel and restaurants

3 Allow exclusive clients without a written agreement in traditional channel to sell other beer brands

4 Limit exclusivity agreements to 25% of our total client base (with a 1% reduction per year until reaching 20%)

Written agreements in on- or off-premise clients for exclusive sale of beer

Most of the time through a pre-payment of the expected margin to be earned by the client

Not all exclusive arrangements are in writing or imply an exchange of money

High transactional costs sometimes create incentives for clients to carry brands from only one beer company without a formal agreement

27

10,545

15,000

2010 2013F

BEST IN CLASS SUPPLY CHAIN World Class Brewery Footprint

MANUFACTURING FOOTPRINT

MONTERREY NAVOJOA

TECATE

GUADALAJARA TOLUCA

PRODUCTIVITY IMPROVEMENT OF 42% SINCE 2010 (hl/fte)

+42%

ORIZABA

28

84

75

2010 2013F

-10.7%

72.9

76

2010 2013F

3.73

3.55

2010 2013F

-4.8%

IMPROVEMENT ACROSS KEY PERFORMANCE INDICATORS

OPI1 PACKAGING (%)

1 OPI = Overall Performance Indicator

Excellence in Supply Chain management delivering value

WATER CONSUMPTION (Hl of water /hl produced)

THERMAL ENERGY CONSUMPTION (Mj/ hl produced)

+4.3%

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SUSTAINABILITY AGENDA

On our way to becoming Mexico’s most admired company

COMMUNITY

Educational Programs and partnership for progress (music, schools, gyms) impacting over 1.5 million people

Local supplier programs benefiting >13,500 suppliers

ENVIRONMENT

Source water Protection

Water stewardship

2020 target to achieve first Water Neutral Brewery

CO2 EMISSIONS

8% reduction in CO2 emissions through:

Green innovation on distribution

Energy savings from fridges across all clients

Eco packs

Green Production

RESPONSIBLE CONSUMPTION

Designated Driver positively impacting over 90,000 people

Responsible Waiter training program for over 7,500 people

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PEOPLE AND CULTURE

Winning through people in a high performance organization

CULTURE ALIGNING OUR ORGANIZATION TO BUSINESS PRIORITIES

MARKET FOCUS HEAD-OFFICE AND SALES PROGRAMS

A GREAT PLACE TO WORK TOP TIER CLIMATE SURVEY RESULTS IN ALL OF HEINEKEN

GLOBAL TALENT DEVELOPMENT 30 MEXICAN EMPLOYEES WORKING ABROAD

REWARD AND RECOGNITION 21% OF OUR MANAGERS HAVE BEEN PROMOTED IN THE LAST 3 YEARS

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SUMMARY

Key Takeaways GROWTH IN MEXICAN ECONOMY AND POSITIVE SOCIODEMOGRAPHIC TRENDS TO UNDERPIN BEER MARKET GROWTH

CM IS DRIVING SIGNIFICANT PROFIT AND MARGIN GROWTH WITH FURTHER UPSIDE POTENTIAL

A CLEAR BRAND PORTFOLIO STRATEGY FOCUSED ON CONSOLIDATING MAINSTREAM WHILST DEVELOPING PREMIUM FOR THE LONG TERM

WINNING SHARE IN CHALLENGER MARKETS THROUGH A TARGETED CHANNEL STRATEGY APPROACH

LONG TERM COMMITMENT TOWARDS THE MEXICAN COMMUNITY

ATTRACTING AND DEVELOPING A GLOBAL TALENT BASE