NewsFood.com

Amsterdam, 29 August 2007- Heineken N.V. today announced strong volume growth and an organic Net Profit growth of 35% for the first six months of 2007 with all regions delivering higher volumes and profits. Heineken confirms its increased full-year forecast of organic Net Profit growth of 20%-25%, which was upgraded in July from 10-13%, mainly as a result of exceptionally mild weather in Europe in the first few months of 2007. The company will pay an increased interim dividend of EUR 0.24 per share on 20 September 2007 (2006: EUR 0.16).

Robust organic EBIT (beia) growth of 27 EBIT (beia) increased 26.8% to EUR 906 million. Net Profit (beia) grew 35% organically driven by higher EBIT and a decrease of financing expenses of EUR24 million. Reported Net Profit was 30.4% lower, reflecting EUR240 million of exceptional charges, which compares with EUR28 million exceptional gains in the first-half of 2006.

Accelerated top-line growth: Revenue grew 8.0% organically, driven by strong volumes, an improved sales mix and higher pricing. Consolidated beer volumes amounted to 58.2 million hectolitres, +9.3%; of this 8.3% was organic and 1% the effect of first-time consolidations. In large parts of Europe, beer markets benefited from exceptionally mild weather in the first few months of 2007. Strong increases in volume were realised in Central & Eastern Europe, Africa and the Far East. Innovation continued to contribute positively to revenue. Volume sold in new draught beer formats, such as DraughtKeg, increased 20% versus the first-half of 2006, totalling 346,000 hectolitres.

Strong Heineken brand share gains: Volume of the Heineken brand in the international premium segment grew 10.8% to 12.1 million hectolitres, increasing once again the brand's share. Heineken Premium Light volumes in the USA grew 30% to 402,000 hectolitres.

F2F fixed cost ratio continues to improve: The F2F fixed cost ratio improved to 31.5% from 33.1% for the full-year of 2006. Heineken's 3-year fixed cost savings programme, Fit to Fight (F2F), delivered additional gross cost savings of EUR75 million for the first six months of 2007. For the full-year gross savings of EUR135-155 million are expected. Heineken forecasts lower restructuring charges over the full 3-year period of the programme of EUR250-300 million; an improvement compared with an original forecast of EUR325-375 million.

CEO Statement

Jean-François van Boxmeer, Chairman of the Executive Board and CEO, commented:
"In the first six months of 2007, we have shown that our drive to develop a performance driven culture within Heineken is making excellent progress. Even when taking into account the exceptional and favourable weather patterns experienced in Europe in the first half, we have delivered growth ahead of expectation.

"The ongoing focus on our key priorities has resulted in strong, organic top line growth and continued achievement against our ambitious cost reduction targets.

"Once again, the performance of the Heineken brand has been outstanding with double-digit volume growth and an increased share of the international premium segment.

"The increasing contribution of our Central and Eastern European, African, and Asian businesses shows that we are balancing the profitability of our more mature markets with the potential of our developing markets.

"Additionally, I am pleased that in the first half of the year we have taken two significant steps in building our business. Firstly, the renewal of the FEMSA agreement in the USA for a further 10 years allows our American operation to mature into a true portfolio business. Secondly, our decision to construct a brewery in South Africa, following us regaining control of the Amstel brand, will mean a stronger, more profitable operation.

"Heineken is now a more agile, performance driven business and I have great confidence that we are well positioned to further grow our business in the global beer market."

2007 full-year profit outlook

In July Heineken NV raised its organic Net Profit growth forecast for 2007 to 20%-25%, as a result of strong volume and top line growth in the first half-year, in particular in Central and Eastern Europe, Africa and Asia. Exceptionally mild weather in the first 4 months of 2007 was one of the drivers behind this strong performance. Heineken expects volume growth to continue in the second half of 2007, albeit at a relatively more moderate pace, given the mixed weather seen at the beginning of the second half-year of 2007 and set against the challenging comparable period of 2006.

Volume of the Heineken brand in the international premium segment grew 10.8%, extending its segment leadership. The segment for international premium beers continues to outgrow the overall beer market and the Heineken brand is well positioned to exploit this trend.

Heineken has fully covered its raw material and packaging requirements for 2007. In line with Heineken's earlier forecast, input costs for 2007 will have increased around 8% per hectolitre as a result of higher purchasing prices, with the relatively greater impact being felt in the second half of 2007.

F2F is on track and expected to deliver cumulative annual gross savings of EUR250-EUR270 million by the end of the year, corresponding to 55%-60% of the EUR450 million total savings programme. For the full-year 2007, exceptional charges related to F2F of EUR65-100 million before tax are forecast.

Interim dividend

Heineken N.V. changed its dividend policy at the beginning of the year, increasing the dividend payout ratio to 30%-35% of Net Profit (beia), versus the previous range of 20%-25%. The interim dividend is now fixed at 40% of the total dividend of the previous year. Accordingly, an interim dividend of EUR 0.24 per share of EUR 1.60 nominal value will be paid on 20 September 2007. The ex-dividend date for Heineken NV shares is 30 August 2007.