Heineken N.V. reports 2014 third quarter results

Amsterdam, 22 October 2014 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today
announced its trading update for the third quarter of 2014.

HIGHLIGHTS

  * Group revenue +0.7% organically, with group revenue per hectolitre up 0.9%
  * Group beer volume +0.1% organically, with positive growth momentum in Asia
    Pacific, Africa Middle East and the Americas region, offset by lower volumes
    in Europe
  * Heineken® premium brand +3%, with growth across all regions
  * Full year outlook unchanged; expect operating profit (beia) margin expansion
    in 2014 to be ahead of medium term target level of around 40 basis points
    per annum.

CEO STATEMENT

Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented:
"Amidst a volatile global environment and poor weather during the high selling
season in Europe, we maintained top-line growth. This was led by broad-based
growth across our developing markets. Our performance in the first nine months
of the year underlines the benefit of sustained investments in long-term brand
building, innovation and strengthened sales execution. This gives us confidence
in reaffirming our full year outlook for operating profit (beia) margin
expansion in 2014 to be ahead of our medium-term guidance."

OPERATIONAL OVERVIEW

                 +------------------------------+------------------------------+
 Key figures(1)  |         Consolidated         |            Group             |
                 +------------------------------+------------------------------+
 (in mhl or €      3Q14      Total       Organic  3Q14      Total       Organic
 million)                  growth %     growth %          growth %     growth %
--------------------------------------------------------------------------------
 Revenue

 Heineken N.V.(2) 5,101        -1.5          0.2 5,577        -1.7          0.7

    Africa Middle
             East   607         3.6          4.1   716         3.7

         Americas 1,183         2.0          4.1 1,359        -2.7

     Asia Pacific   544          10           12   626          17

        Central &
   Eastern Europe   820        -8.5         -6.4   928        -7.8

   Western Europe 2,062        -4.1         -2.4 2,062        -4.1
--------------------------------------------------------------------------------
 Beer volume

 Heineken N.V.     48.0        -0.6         -0.2  52.4        -0.2          0.1

    Africa Middle
             East   5.7         6.7          6.5   6.7         6.5          6.3

         Americas  13.5         3.3          3.2  14.3         2.9          2.9

     Asia Pacific   4.7         9.0          8.7   6.1          11          9.7

        Central &
   Eastern Europe  12.2        -6.6         -6.6  13.4        -6.3         -6.3

   Western Europe  11.9        -4.7         -3.1  11.9        -4.7         -3.1
--------------------------------------------------------------------------------
(1 )Refer to the Definitions section for an explanation of non-IFRS measures and
other terms used throughout this report
(2 )Net of head office & eliminations

Group revenue increased 0.7%, organically, reflecting a total group volume
decline of 0.2% and higher group revenue per hectolitre of 0.9%. Consolidated
revenue decreased 1.5% to €5,101 million. This includes a negative net
consolidation impact of 1.3% (-€67 million) mainly from the divestment of the
Hartwall business in Finland in August 2013 and an unfavourable foreign currency
translational effect of 0.5% (-€24 million). Organically, consolidated revenue
grew 0.2%.

Group beer volume grew by 0.1% organically, led by sustained growth of the Asia
Pacific, Africa Middle East and the Americas regions. Volume performance in
Europe (compared to the first half of 2014) was slightly below expectations
owing to unseasonably wet weather conditions.

                                 3Q14   Organic     YTD   Organic
                                         growth    2014    growth
                                              %                 %
  Heineken®
  (in mhl or %)

------------------------------------------------------------------
  Heineken® in premium segment    7.8       3.0    21.9       5.3

            Africa Middle East    0.9        15     2.7       8.0

                      Americas    2.2       0.2     6.5       4.1

                  Asia Pacific    1.6       3.9     4.5       0.7

      Central & Eastern Europe    0.7       5.5     1.9       5.2

                Western Europe    2.3       0.3     6.3       9.0
------------------------------------------------------------------

Heineken® volume in the international premium segment grew by 3%. Heineken®
brand growth was particularly strong in markets including China, Brazil, Mexico,
Taiwan, Russia, Canada and the UK. This growth was supported by continued
activation of the 'Open Your World' marketing campaign.

Reported net profit in the quarter was €460 million compared with €483 million
in the third quarter of 2013. Net profit (beia) was lower compared to last year.

OUTLOOK STATEMENT

(Based on consolidated reporting)

HEINEKEN reaffirms all elements of its full year outlook for 2014 as stated in
its half year 2014 earnings release dated 20 August 2014.

REGIONAL REVIEW

Africa Middle East
Consolidated revenue grew 4.1% organically with solid total volume growth of
8.1% partly offset by lower revenue per hectolitre of 4.0%, primarily reflecting
the impact of negative country and product mix. Over half of the decline in
revenue per hectolitre is due to the faster growth of HEINEKEN branded volume
licensed to third parties. Group beer volume increased 6.3% organically, led by
continued strong growth in Ethiopia, Burundi, Algeria, Cameroon and Tunisia. The
beer market in Nigeria was impacted by a prolonged wet season leading to reduced
consumer spending and a stable volume development. Ethiopia saw strong double-
digit volume growth in the quarter as we benefited from the recent addition of a
new brewery which has been operational since July. Volume in the quarter was
also higher in Rwanda, Egypt and the Democratic Republic of Congo. A continued
challenging economic environment in South Africa led to marginal volume decline.

Americas
Consolidated revenue grew 4.1% organically, driven by 2.9% total volume growth,
and higher revenue per hectolitre of 1.2% from continued effective revenue
management. Group beer volume grew by 2.9% organically in the quarter, led by
ongoing growth in Mexico and higher volumes in the Caribbean. In Mexico, strong
activation of marketing programmes and outlet execution drove continued
portfolio growth, led by the Tecate Light and Dos Equis brands. Brazil volumes
were lower due to lower consumer spending following the World Cup football event
and a softening economic environment. The Heineken® brand continued to grow in
the double-digits in Brazil. In the U.S, sales to retailers were positive,
outperforming a declining market. This reflects continued solid growth of the
Mexican beer portfolio in the U.S, with performance of the Heineken® lager also
outperforming the market.

Asia Pacific
Consolidated revenue grew 11.9% organically, with total volume growth of 9.6%
and revenue per hectolitre growth of 2.3%. Group beer volume was up 9.7%
organically, with this improved growth momentum reflecting strong performances
in India, Vietnam, China, Indonesia, New Zealand, Cambodia and the export
markets of Taiwan and South Korea. Volume in Vietnam increased in the high-
single digits reflecting improved consumer sentiment and the benefit of our
brand portfolio strategy, resulting in further market share gains. Volume of the
Tiger brand grew in the double-digits in the region led by strong growth in
Vietnam and Malaysia.

Central & Eastern Europe
Consolidated revenue declined by 6.4% organically, with a total volume decline
of 7.0% partly offset by higher revenue per hectolitre of 0.6%. Group beer
volume declined by 6.3% organically, reflecting continued challenging trading
conditions in Russia, Poland and Romania and the effect of unfavourable weather.
The beer market in Russia continued to be adversely impacted by legislation and
a softening economic environment. This led to a low-single digit volume decline,
with lower volume of mainstream brands only partly offset by solid growth of the
premium brand portfolio. Volume in Poland continued to be negatively impacted by
sustained competitive pricing pressure. In Austria, volume was lower following
unseasonably wet and cold weather. Volume in the quarter grew in Serbia and
Germany and was marginally higher in Greece. We continue to execute against our
value growth strategy in the region with a focus on pricing initiatives,
investment in premium brands and innovation and ongoing cost efficiencies.

Western Europe
Consolidated revenue declined by 2.4% organically, reflecting lower total volume
of 3.8%, partly offset by revenue per hectolitre growth of 1.4%. The ongoing
success of innovation contributed to improved sales mix and higher revenue per
hectolitre growth versus the first half of the year. Group beer volume was 3.1%
lower organically, following exceptionally high levels of rainfall across the
region in July and August as well as a higher comparative volume base from the
prior year quarter. Volume in the UK, France and Italy all declined in the mid-
single digits and was marginally lower in The Netherlands. Volume in Spain grew
in the low-single digits underpinned by higher consumer confidence and improved
trends in both on- and off-premise channels. The benefit of higher commercial
investments focused on brand equity building, premium-led innovation and
improved promotional effectiveness again led to broad-based share gains across
the region.

BUSINESS DEVELOPMENT UPDATE

Below is an update of business development activity since the release of
HEINEKEN's half year 2014 results on 20 August 2014:

  * The disposal of the Mexican packaging business, EMPAQUE was announced on 1
    September and is expected to close by the end of the year subject to
    customary closing conditions and required regulatory approvals.
  * The acquisition of the indirect shareholding of Coca-Cola HBC in Zagorka AD,
    the Bulgarian brewer, will increase HEINEKEN's ownership to a controlling
    stake of 98.86%.  Regulatory approval has been obtained and the transaction
    is expected to complete by the end of October 2014.
  * The divestiture of an 80% shareholding in our subsidiary Brasserie Lorraine
    on Martinique to Antilles Glaces was completed in September 2014. HEINEKEN
    retains a 20% shareholding in the business.
  * On 10 October, Nigerian Breweries Plc notified The Nigerian Stock Exchange
    that management of Nigerian Breweries Plc and Consolidated Breweries Plc
    have received approval of the Scheme of Merger document from the Securities
    & Exchange Commission for the proposed combination of the two businesses.
    The next step involves shareholders of both Nigerian Breweries Plc and
    Consolidated Breweries Plc voting at separate court-ordered EGMs
    (announcements to follow when dates are confirmed). The proposed merger is
    expected to be finalised by the end of 2014.

DEFINITIONS

Organic growth excludes the effect of foreign currency translational effects,
consolidation changes, accounting policy changes, exceptional items and
amortisation of acquisition-related intangibles. Beia refers to financials
before exceptional items and amortisation of acquisition-related intangibles.
Group figures include HEINEKEN's attributable share of joint ventures and
associates. Group revenue in 2013 has been restated from the earnings release
dated 23 October 2013 (with no impact on group operating profit (beia)). The
license fee for the Heineken® brand has been increased since 1 January 2014. To
facilitate a meaningful financial and margin comparison compared to last year,
the regional impact is reported as a consolidation change in 2014.

ENQUIRIES

  Media                              Investors

  John Clarke                        George Toulantas

  Head of External Communication     Director of Investor Relations

  Christine van Waveren              Sonya Ghobrial/ Aarti Narain

  Financial Communications Manager   Investor Relations Manager(s)

  E-mail: pressoffice@heineken.com   E-mail: investors@heineken.com

  Tel: +31-20-5239355                Tel: +31-20-5239590



HEINEKEN INVESTOR CALENDAR 2014

  What's Brewing Seminar, Western Europe, London   12 November 2014


CONFERENCE CALL DETAILS

HEINEKEN will host an analyst and investor conference call in relation to this
trading update today at 10:00 CET/ 9:00 BST. 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:

 Netherlands                                 United Kingdom

 Local line: +31(0)20 713 2790               Local line: +44(0)20 7136 2054

 National free phone: 0800 020 2576          National free phone: 0800 279 4992



 United States of America

 Local line: +1718 354 1152

 National free phone: 1877 280 2296



 Participation/ confirmation code for all
 countries: 3232861


Editorial information:
HEINEKEN is a proud, independent global brewer committed to surprise and excite
consumers with its brands and products everywhere. The brand that bears the
founder's family name - Heineken® - is available in almost every country on the
globe and is the world's most valuable international premium beer brand. The
Company's aim is to be a leading brewer in each of the markets in which it
operates and to have the world's most valuable brand portfolio. HEINEKEN wants
to win in all markets with Heineken® and with a full brand portfolio in markets
of choice. The Company is present in over 70 countries and operates more than
165 breweries. HEINEKEN is Europe's largest brewer and the world's second
largest by consolidated volume. HEINEKEN is committed to the responsible
marketing and consumption of its more than 250 international premium, regional,
local and specialty beers and ciders. These include Heineken®, Affligem, Amstel,
Anchor, Biere Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis,
Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow,
Tecate, Tiger and Zywiec. Our leading joint venture brands include Cristal and
Kingfisher. The number of people employed is over 81,000. Heineken N.V. and
Heineken Holding N.V. shares are listed on the NYSE Euronext in Amsterdam.
Prices for the ordinary shares may be accessed on Bloomberg under the symbols
HEIA NA and HEIO NA and on the Reuter Equities 2000 Service 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 via @HEINEKENCorp

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,
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 are only relevant as of the date of this press release.
HEINEKEN does not undertake any obligation to release publicly any revisions to
these forward-looking statements to reflect events or circumstances after the
date of these statements. Market share estimates contained in this press release
are based on outside sources, such as specialised research institutes, in
combination with management estimates.


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