Heineken Holding N.V. (HEIA) Earnings Call Transcript & Summary

Okay. Good morning to all of you. And let me start by saying welcome back to Amsterdam. And I don't know about you, but it felt so incredibly good last night to share a beer together back here at the Heineken experience after all those years of looking at the damn little screens. When we were planning this, we realized that you guys love to go to Ho Chi Minh City, Sao Paulo, [indiscernible] leadership team here at the company by telling our story at home. For Heineken, this is sacred grounds. This is where it all began 158 years in, the [indiscernible] was cooled down, and there's the ventilation spaces up front before it went to fermentation where the magic happens. And we hope this next 1.5 days magic will happen again. Our story is a story about continuity and change like the Heineken experience. As an 158-year company, we have a deep sense of legacy of the foundation that we're building on. And at the same time, we only get to be 158-year company, if you adapt and change, you renew yourself continuously. And EverGreen is really the story, how we built on the past while renewing ourselves, adapting to a fast-changing world around us. Now real quick. All of us will shortly introduce ourselves. I think I've met most of you. For those I have not a quick introduction. I'm what's called lifer. In February, I will be celebrating 25 years with the company. My background is in marketing and sales. I have to say, sometimes I miss it. But then James allows me in the candy store, I get to play a little bit before he kind of kicks me out again. And I guess the other thing that's maybe nice to share that I was lucky that I spent -- yes, the majority of my career in the Heineken world, we say born in Amsterdam, raised by the world, fairly true for me personally as well. As I started in Africa, in Kinshasa, U.S., Mexico, Latin America and Asia before coming back home 2 years ago. Now more relevant is that this 1.5 day will also really give you the opportunity to meet the team. You get to see Harold and myself with some regularity and the business team that is leading the charge that's really bringing EverGreen to life in the company. And this is a team that shaped in the crucible of crisis. Between June 2020 and June '21, 8 new members out of 11 came together. And I think, again, on the steam of continuity and change, we have Marc and Roland, who have been lifers, who have been with the company for a very long time, and are already on the executive team. And people like myself and Ronald, Jacco, where people have spent all their lives with deep institutional launch at the company new to the ET. Then we have a couple of colleagues like Soren and Yolanda, who are already 5 to 10 years with the company, but new to the ET. And we have some new members joining us from outside, bringing fresh perspectives and expertise like Harold, Stacy and James. For me, maybe the most important is not just the membership and what everybody brings, but it's really how we operate as a team. And again, this team was shaped in the crucible of crisis. We got together virtual with people sitting in 4 different time zones. And we have been very deliberate on how we work together and where we really take collective ownership offsetting the direction, shaping the strategy and bringing it to life. And I really hope that, that sense of alignment comes through over this next 1.5 day. You will hear everybody speak. And today is skewed a little bit more to superior growth. You know and we like to save ourselves. We are a growth company, first and foremost. Today skews that direction with James, 3 out of 4 regional presidents. We have Ronald really speak to the B2B and Yolanda. And tomorrow is really about superior and balanced growth, and really how we also bring productivity and capital efficiency, and Harold will kick that off. At the end of each day, we have extensive period for Q&A. So really save your questions, if you like, for the end of the day, and we'll make sure that we have enough time to address them. So what I would like to share in my remaining 40 minutes or so is revisiting, recapping shortly the rationale for EverGreen, and this will be a bit of a repetition of what I shared in February '21 when we kicked off EverGreen. Then I would like to further sharpen and clarify the EverGreen strategy. We get to speak, as always, first and foremost, about growth, how we aim to shape the future of beer and beyond, and ultimately how it translates to value as we aim to deliver superior and balanced growth. So starting with the rationale for EverGreen. And as said, it's a story of continuity and change. It's grounded in a very, very strong foundation. Our global footprint, our kind of growth orientation, our global portfolio, of course, led by the Heineken brand present in 190 countries and actually accelerating rather than slowing down. Very opco-centric entrepreneurial culture, where we're deeply kind of in sync with local consumers and customers. Strong values and a quality and people-centric culture and mindset, and a long-term focus, a long-term bias, as Tom likes to say, a little bit of ability to suffer in the short term to do what's right for the long-term value creation of the company. And yes, we all know the world around us is changing very rapidly. The industry is changing very rapidly. And already when I was nominated to February, 2020 before that little thing COVID was there, it was already the intent to really start a period of organizational renewal. And then I think all the kind of successive crisis have only encouraged us to really go deep and make sure that we future-proof the company for the future. Now double-clicking a little bit on that strong foundation, first and foremost on how this company has and always aims to deliver superior growth, which is what we have been doing in the prior periods. It's really built on a very powerful footprint with over number 70 #1 and #2 positions through our operating companies and our JV partners, very balanced between emerging markets and developed markets, a very diverse broad portfolio with skewed premium. I think we dare to say that Heineken is one of the first companies 20, 30 years ago to start leaning in to the premium segment, which is where the growth and value creation is. Brand Heineken, 1/5 of our total volume, but of course, symbolically any value creation and much more. And we like to say we are a company that will always go for brand pull first before going for push. We always want, through our brands and through superior connections with our consumers, we want to generate that brand pull and then make sure that we give it the appropriate brand push. Now again, underlying why have we been able to do it? It is that entrepreneurial opco-centric culture with strong local management teams with ownership, with commitment, with accountability to deliver the goods in the local markets. We take great pride in ourselves as creative brand builders, always trying to delight and surprise our consumers. And that long-term orientation, which also translates itself how we relate to our JV partners, how we relate to our customers, not transactional but in a kind of strategic long-term way. Now it's also good to be transparent about the flip side. What are the things that we feel we need to address? And maybe not a lot will be so transparent to show this, but I already showed it to February last year so I might, again, here are some of the things that we felt that we had to bend the trend on. We were seeing our gross margin, as it was starting to slide. We were seeing that we were starting to squeeze our marketing and selling expenses to hit our operating profit targets for the year, which were stagnating. And on the capital turnover, we also -- we're seeing that it was becoming a bit less efficient rather than more. Now more relevant is even, okay, why was that happening? What was kind of the root cause as we look at it from EverGreen point of view. And one is that we have this amazing global network of OpCos, but we were not leveraging it. And the flip side of that very entrepreneurial opco-centric culture is that every opco is a bit a company in itself, a little bit of an island, with a strong not-invented-here syndrome, and where everybody was a little bit reinventing the wheel, creating a lot of inefficiencies and limited collective learning. Therefore, that was really blocking us from scaling capabilities very rapidly, whether it's in revenue management or in digital, et cetera. And then, this has been much publicized as well, that we never truly harmonized our technical backbone. So we still have our transactional processes, data definition systems not yet harmonized, which then gets in the way of really leveraging the power of a network of companies in over 70, 75 countries. So that is a little bit, in the most succinct way as I can say it, is our core strength and the key thing that we aim to address through EverGreen. But we're not doing this in a vacuum. And as I said, the growth from February 2020 to February '21 to now has evolved more rapidly than I think any of us could have imagined. There's deep geopolitical change, which for us as a truly global company has its ramifications, amongst others, our decision to leave Russia. It has ramifications on the global energy footprint, which, of course, has a big impact on us. Technology speeding up, the power, but also the threat of AI, socioeconomic, the war for talent, Black Lives Matter, diversity inclusion, climate change going from a risk to reality and starting to impact us, like scarcity of water in some of our operating companies. So EverGreen is really about building on our strength, addressing some of the challenges as we saw them emerging, but also really adapting to this new external environment. Now it's also good to say this is not the first time that we have to do this as a company, that Heineken in its 150-plus years has adapted to these big changes in the world several times. And that actually, this company was crafted in the second half of the 19th century when the industrial revolution was really starting to scale. Heineken was one of the few brewers that made the jump from being a small artisanal local around [indiscernible] brewery to really becoming an industrial scale brewery. And this brewery is literally one of the first industrial scale breweries in the world. And the early 20th century, with the first wave of globalization, Heineken was one of the first to really take advantage. Already late 19th century, we built a brewery in Rotterdam for exports, fully dedicated to exports at the time, that 99.9% of brewers were still very local. Our first international participations in Central Africa, in Indonesia were taken in that time. Mass marketing, after the second world war, mass media, television becoming mainstream, allowing to market our product very differently. Freddy Heineken, one of our founding fathers really led the charge on that. Late '90s, early 2000s with the emergence of global capital markets, the second wave of globalization, consolidation really starting to happen. And again, Heineken playing a leading role in that particular -- want to acknowledge my predecessor, Jean, in really helping lead Heineken in that era. And we feel there's a new era upon the world, and therefore, there's a new era upon the company. And it's not yet fully clear how it will manifest itself, but we feel deep sense of responsibility of making sure the company is ready for it and is agile and adapting itself to both the challenges and the opportunities. And that's how EverGreen was born, let's say, in the summer of 2020, building on strength, really all about sustaining growth within a fast-changing world. It was always meant to be a multiyear effort. And it is about gaining speed, agility, ability to future-proof the company going forward. And we used EverGreen because we wanted a metaphor for nature, because nature is the ultimate system of resilience, agility and adaptability. And beyond that, our color is green, as you can see, so that fit as well. So what I would love to do in the next few slides is really starting now moving from the rationale of EverGreen to clarify the strategic focus points for EverGreen. On this slide, we try to capture some of the key shifts that we are trying to make. First one is that in that prior era of global consolidation, our model has been very M&A-driven. Scottish and Newcastle, FEMSA, APB, and it has generated a lot of value for the company. But at the same time, we feel that driving growth organically in the rest of the network, we can do really a better job. And we need to do a better job going forward. We have always been a leader in premium, but we see still big opportunities. You will hear Soren tomorrow, how big of an opportunity premium still is, for example, in Europe, how we can truly become more consumer-centric rather than just brand-centric. We have a great execution culture, delivered goods as we say it in our language, but we feel that we need to move from that more relational world to a more digital world, and we will hear Ronald on that. We are a superior top line growth company that it was biased to volume. And one of the things that we want to do is to start to balance that by delivering end of volume and the pricing but also really making sure that we hit the other quadrants of what we call our Green Diamond. I will come back to that in a minute. And moving off that very local opco-centric culture to a more network business. And what that means, I will also specify a bit more. Now all of this, of course, needs to be grounded in purpose and values. And together with literally thousands of other people from all our operating companies we have spent time to really try to sharpen and verbalize our purpose more strongly. And where we landed this with this wording, we grow the joy of 2, togetherness to inspire a better world. Beer has always been the ultimate social lubricant since the time of the Egyptians. But we feel in this world of divisiveness, of fragmentation, of polarization, and that we can be as a category, but also as a company, as a brand, be somebody who brings people together and just enjoy a beer together and strengthen that notion of human connection. And I think you start seeing that really coming through in our advertising, but also, for example, how we are together as a company. And then our values, passion for consumers and customers. We always have passion as a value, but it was passion for quality, which we don't mind that quality was a very internal kind of expression. It all became about rules and regulations, the recipes and compliance. Well, ultimately, it needs to be at the service of consumers and customers. So by shifting that value from passion for quality to passion for consumers and customers, we want to bring in a notion of more external orientation. Courage to dream and pioneer is new. That's a new value. But it's not new to the company because we believe it's deeply embedded in our DNA. Freddy Heineken was a very courageous man. And in this time of shifting seasons and shifting eras, we really feel we need to appeal to that notion of courage to dream, curiosity, imagine, create. Caring for people and planet has always been there. We are a very people-centric culture. We are a WE culture, as we like to say, and we extend that to the planet. And enjoyment of life. We're the beer guys and girls, so we might as well have a bit often while doing it. And I hope like last night, you get a feel for that. So those are our values and our purpose. But you don't sell beer through your values and purpose. You do that through strategic focus. And the 5 things that we want to focus on, going forward, and as we have been focusing on for the last 24 months, are these 5 things. One -- the first one is all about top line growth. And we call it shape the future of beer and beyond to win with the hearts of our consumers. The second one is about digitizing the business and really becoming the best connected brewer. The third one is all about productivity, really adding productivity as a value creating engine for the company to fund both the growth and the profit. Sustainability, a big step-up in sustainability and responsibility because that's what the world truly needs. And then people, unlocking the full potential of our people and our network. And we'll very shortly speak to each 5. And then basically, throughout today and tomorrow, you will hear one after the other, the different ET members speak to parts of these 5 priorities. Now the strategic priorities, that's what we do. That's what we focus on. And those priorities propel our growth algorithm. We shared the growth algorithm with you last year, which is all about that EverGreen algorithm of accelerating growth, unlocking new productivity gains, reinvesting them so we can grow faster and ultimately deliver long-term value creation, which we measure through the Green Diamond. Heineken was very biased to growth and actually volume growth. And with the Green Diamond, we really try to send a strong signal to the organization that we want to see balance across. We want that growth, but to grow more balanced between volume and value. But growth is no longer enough. It's growth and productivity and capital efficiency and making sure we deliver on our key commitments and ambitions on S&R. So this slide is maybe the most succinct way of visualizing or verbalizing what the EverGreen strategy is all about. And again, the next 1.5 days will all about be about this 1 slide. What I will do next is talk to that first priority of shape the future of beer and beyond. And we'll do that by talking about our beautiful category. And I know there is this huge verbal battle going on between the spirits guys and the wine guys and the beer guys about who's growing faster than the other. I will contribute to that as well in one slide. So -- but we really believe beer is an amazing category. It's one of the broadest consumer categories in terms of consumer penetration on the planet. It's accessible, it's inclusive, it's moderate. It's purely natural. It's still a very local business, it's large. And we believe we are growing share of throat, I will speak to that. It's very profitable. And at the same time, we still see major opportunities. Premium, in a way, it's a 20-, 30-year-old story, but actually, we believe there is still another 20 or 30 years of growth. Emerging markets, beer is all about demographics and growing GDP per capita. That game has still many years to go. And at the same time, if we allow ourselves a bit critical, we are in the certain occasions and consumer group, and we feel we can, should innovate against that. Now on the category, what you see is that beer historically has grown in line with demographic growth, with global population growth. Global population growth is slowing down somewhat. You see that reflected from a 2% CAGR to somewhat 1% CAGR. You saw it after the economic crisis of the early 2010. You saw it in the years leading up to COVID reaccelerate a little bit. A lot of people ask us, okay, what do you expect? Hard to say. We see publications talking about 2% CAGR going forward. We don't know. Anybody can tell. But I think it's fair to say there's at least 1% to 1.5% fundamental category growth at the volume level. Now -- and then we know that from a volume-to-value conversion, beer is actually the largest segment in total alcohol from a value point of view. Now speaking a little bit about that share of throat debates. Because there's a lot of talk about this, and it's good to clarify. First, you need to clarify whether you talk about value or about volume. And one thing is that when you talk about value, it's super hard to get global data across all these different markets with different maturities. So what I show is the global data from a volume point of view. And what we're seeing is that beer is gaining share of throat in total alcohol structurally, whether it's global, whether it's in emerging markets, where there's still a lot of conversion of economy spirits to mainstream and premium beer. And interestingly, the developed markets, it's basically a tale of 2 stories. And I don't think this has been picked up broadly yet, whereby we see in Europe that beer is actually holding to gaining share in total alcohol, whereby in the U.S., core beer clearly has been losing a share of total alcohol. But when you add the beyond beer space, when you add cider, ready-to-drink, seltzers, flavored malt beverages, then actually, the picture is more nuanced. And you see that even in those markets, developed markets and particularly the U.S., it's growing a bit of share of throat in total. What's fair to say, and James will also speak to this, what the spirit guys have done very well is really super premiumizing, so driving value in developed markets. And that's something we, as beer players, I think we can still play a much better game at. Emerging markets, there is still a lot of growth. Again, it's always dangerous to look at averages. But in emerging APAC, Southeast Asia, India, the Africa/Middle East region, there's a lot of growth. And again, we have skewed our global footprint towards these markets. Premium, I'm going to be short. You will hear premium a lot in the next hours. We believe it's big, it's valuable, it's growing, and we have the right to win in this space. And then, as I said, it's also good to be a bit critical, and to be curious how we can serve our consumers better. And this is really that kind of shift to becoming a more consumer-centric company. And James is really leading the charge on this, where we really feel that beer is doing a great job in certain occasions with certain consumer targets, but there are occasions and consumer targets where it's doing less of a good job. Also beer is still relatively undifferentiated at the product level, with over 90% of beer being lager or pilsner beer. And we do foresee that, that will start to differentiate, like how almost any consumer goods category on the planet has started diversifying on its core product dimension. And as I said, spirits is doing a very good job at super premiumizing, and that's something particularly in developed markets, that's relevant, and we need to find an answer to that. So those are some of the opportunities that we see. And therefore, the strategic intent that we are setting as a company on our top line is to shape the future of beer and beyond to win the hearts of consumers. And every word is deliberately chosen. Shape. Shape the Future. And the big danger of 158-year-old company is that you try to not lose, that you try to protect or defend what you have, rather than shape and create and imagine and bring something forward that is new. So it's really an invitation to our global commercial people, our global marketeers, our advertising agency -- our innovators, to really imagine, to be curious, how can we better serve our consumers and customers globally? Deliberately also the little word beyond. So it's really about beer first. We still feel there's so much opportunity in beer. And to continuously renew and disrupt yourself, but then it's also really going into that beyond space. We're doing that through 4 key focus areas. One is leveraging our advantaged footprint. The second one is about scaling premiumization, pioneering low- and no-alc and exploring the beyond beer. Our footprint, I think you're intimately aware, we take great pride in how balanced and diversified our footprint is. I think there's no other alcohol beverage company with this kind of breadth and depth of footprint with over 70 #1 or 2 positions across the world, 50-50 developed emerging market. Also, we are avoiding huge concentrations in a limited number of markets and takes 22 operating companies to get to 80% of our profit. And we believe there is a very high embedded growth in our footprint, at least 100, if not 150 basis points of growth. Now as I was saying, we are really going from a model that was really dominated by M&A, to a model where there still will be M&A. We always will be on the outlook for good opportunities to further strengthen and deepen our footprint, but it will be a strategy that is more skewed and focused on organic growth, really leveraging this amazing network of 70 #1 and 2 positions to do better. I'm not going to speak to the details of the slide. You will hear each of the regional presidents speak to this. Then the second focus area, which is premiumization. Of course, we have always done this through Brand Heineken. Now 40% of our revenues come from premium. Brand Heineken is accelerating rather than slowing down. We have double-digit growth in over 40, 45 markets now for the second, third year in a row, 14 markets where it has real meaningful scale over 1 million hectoliters. Now a couple of observations about the future. One is Brand Heineken still has ways to go, and the regional president will show our results in Brazil, will show our results in a market like China. And you will see how we're excited we are still for the future of that brand. But then there's big opportunities on international brands and really starting to globalize them, brands like Desperados, brands like Tiger. And again, you will hear the team from it. And we really are finding a replicable model on how to do local premium, where we use insights from the network that we apply them locally. Secondly, the way Heineken 20, 30 years ago, pioneer premium beer, I think more recently, Heineken has truly pioneered 0.0 beer. 0.0 beer has always been there, but it was stagnant. It was low quality, it was bad taste, and it was not growing. And basically, almost every single market where we have launched Heineken 0.0, we have premiumized, we have broad quality, and we have ignited growth. And not just in the usual suspects in North America or Europe, it's in markets like Brazil, markets like Russia at the time. In markets like Mexico, Heineken 0.0 has been unlocked on the segment. And we now need to broaden our approach beyond Heineken 0.0 and again, you will hear the team on that. And last but not least, explore the beyond beer. First, there's also this big debate what is beyond beer. And the simple definition, I have in my mind is that I consider beyond beer, any moderate ABV alcoholic proposition, 4% to 6% ABV, let's say, that fits in a 12-ounce bottle or can, and you can produce it more or less without too much adaptation to brew, we call it beyond beer. Now the original beyond beer category is actually cider. It's very similar in process, you can make it in a brewery. You stick it in a 12-ounce bottle or can. And we're actually very big in this. We are the global market leader. And if and when the Distell acquisition will be fully closed, we will be, by far, the largest player in cider, which is a very interesting and attractive segment. And we have been able to ignite cider of course, all across Europe and what have you. But also markets like Mexico and Vietnam, where Strongbow is the #1, let's say, flavored alcoholic beverage in the market through its cider proposition. Desperados, which started as a flavored beer, is really starting to go into these flavored beverages as well. Now the future is about truly being consumer-centric, because what we are learning about this space, it's much less global. This is really about market by market. Seltzer proved to be a primarily U.S.-centric kind of acquisition. And the way it's manifesting itself may be in a very different way. So we learned in the U.K., launching a Seltzer was not working, but taking the Seltzer functional attributes and applying to Strongbow in a proposition called Strongbow Ultra is really working. So we really feel this is a space of innovation, and where you really need to have strong local consumer insights. Again, you will hear the team on how we think and work in this space. So that was the first major priority, all about our top line shaping the future of Beer and Beyond. The second major strategic priority area is digitizing the business and it's becoming the best connected brewery. On the right side, it's the not so sexy part. It's really modernizing, simplifying the back end. This is about globally standardizing your transactional processes, your data definitions, your tech systems so that you really get one common technical backbone. Sounds very obvious. Many companies have done this. Heineken, for various reasons, have never gotten to it. We need to do it. If we don't do this now, it really gets in the way of the left side because if you really want to capture the value creation opportunity of digitizing your consumer connections, digitizing your customer connections, you need that harmonized backbone. So we have decided this is happening. We are now 2 years into what's probably about a 6, 7 years journey, and Ronald is really leading the charge on this. As you may recall, Ronald was appointed in a new role of our Chief Digital Technology Officer 2 years ago. Then on the left side, that is the exciting stuff. That's where the value creation is. That is really leveraging digital to your benefit and how you relate to consumers and in this case, customers. And we are really on track to deliver EUR 15 billion in gross merchandising value through our digital B2B platforms globally by 2025. And again, you will hear Ronald speak to that in detail, a very important building block in our strategy. Because this is actually an enabler for some of the other priorities. The third major priority is productivity to fund both the growth and fund the profit of the company. And here, culturally, we are making a deliberate change or evolution in how we think about this. There was a little bit a mindset in the company that either you grow or you do margin. But if you focus to march on margin, you're going to kill the growth and vice versa. And the way we think about it as a team is, if you want to play Champions League, you need to do both. If you play Champions League, you need to attack and defend. You can't say, I love to attack, that's my culture. That's what I do. But I'm not going to be bothered by defense. You need to do both. And I think that's really starting to sync in, in the company that we can be both a growth company, a superior growth company. And at the same time, do what we need to do on the productivity side, so we can continuously invest in growth as well as make sure we have operating leverage over time. I think the crucible of the succession of crisis that we have faced over the last 24 months has been extremely helpful. This was the biggest generational opportunity to really reset a couple of ways of working of capabilities in the company. And we will deliver on our EUR 2 billion gross savings program by next year. And actually -- and I'm sure you all have picked up on that in the pre-release of yesterday, we have committed ourselves to EUR 400 million of savings annually a year. You are not the primary audience, actually our own people's the primary audience, because we want to be very clear that this is the expectation, that this is just something that's part of doing business successfully. Again, tomorrow, Harold, Marc and Soren will really speak to this in much greater detail. Then the fourth strategic priority is sustainability responsibility. On this, we did a dedicated investor call in April last year, where we set out our ambitions on environmental sustainability, social sustainability and responsibility, 3 dimensions, 9 ambitions that we have expressed including net zero in our own operations by 2030, and including Scope 3 by 2040, and a focus on water and gender. So out of those 9 dimensions, we are prioritizing 3. We're putting our money where our mouth is. We make this part of our long-term incentive program, this year was the first year, and we really are starting to work against this. Hard work, not easy but it needs to be done. It's simply part of doing business going forward. Very proud of how we are moving the needle on gender. Beer historically has been a very male-dominated industry. And by the way, I believe this is one of the reasons why beer is under fair share with women -- female consumers. So really, this is a dimension that gets a lot of attention. If you take, for example, our top 150 leadership between 2019 and this year, we doubled the number of female leaders on our top leadership team. So we're heading in the right direction, but still a lot to do. And then the fifth dimension, people and organization. And people organization, those are the kind of interventions we need to make in order to be able to deliver these other 4 priorities. And the first one is how we think about our operating companies. As I said in the beginning, we take great pride in that the local sensibility, the local ownership and commitment from our local teams, but it's really got in the way of collective learning, collective scaling, collective exchanging. And we're really moving to a much more networked approach. I think you will pick this up with all of the regional presidents, but particularly with Soren tomorrow in how he's working in Europe. You will really get a sense of how this is changing. This is not about centralizing. We don't want [ ivory ] tower in Amsterdam to make the decisions. But what we do in system is that we stop the not-invented-here syndrome. And then we start benchmarking, learning together, scaling together because we feel there's a big upside. And that's why the right side tries to express it, that the right side of our brain, our -- and the marketeers, the innovators, the customer-oriented, there we want to be very local. And there we want to empower as much as we can, because beer is still a very local business. But the back end, your order-to-cash process, nobody is competing on its order to cash process, but we have 43 different ones. That part, we really need to harmonize, we need to standardize. And that's not -- no longer a friendly question to the opcos, we are just going to do it. We're just going to figure out together when and how, but not if we are going to do that. So this is a subtle but important change that we're making to how the company is running. And it's not a black and white from central -- from de-central to central. We want to keep the de-central nature of the business but make it more horizontally connected. Now the question, of course, is how does the organization react? Are these things freaking them out or not? And one way to gauge this is through our annual -- or actually Biannual Organizational Climate surveys. And I'm very happy. And I'm actually proud to say that when you look to our organizational climate, and Yolanda will speak to this in more detail, it's going up year-over-year. And we are now firmly above 2019. That's important to us because we have a global reorganization, new leadership, new strategy, a lot of disruption happening to the company. But actually, the organizational climate is strengthening, particularly in areas like direction alignment, performance enablement, team embracing change, we really see big upticks. But very importantly, is an external benchmark against high-performance norm. This is the top quartile of companies. And you see as a priority or above. This is very important. In the end of the day, our greatest asset is our people and our climate and our culture. And there's still a lot of work to be done. And Yolanda will speak to that, how we think about talent, about our capability strategy, how we think about performance culture, Harold will say some of that more, and how we really deploy the EverGreen transformation. But a few we set a step -- a big step in the right direction on this one. So that's it. In summary, our 5 strategic priorities and each of one of them is boosting a critical capability. Now very important is then how are these 5 priorities, these focus areas, where we're spending 99% of our time, how that is propelling our value creation? And that's through the growth algorithm. And ultimately, as I said before, we measure that through the 4 quadrants of the Green Diamond. So I will have 2, 3 minutes on that latter part, because tomorrow Harold will really double and triple click on this part. First, stepping back and looking at value creation, I think we can be proud that as Heineken over the years, we've always been a company in the top quartile, in the top range in terms of value creation. And it's really firmly our commitment to continue to do that going forward. And the growth algorithm is the way that it expresses itself. At the top, deliberately superior growth, because we want and always aim to be a superior growth company, first and foremost, through our brands, through brand pull, through our innovations through our superior customer relationship. What we -- the change that we're making there beyond all the marketing changes that James will speak about, we will be looking for a bit more balance between volume and value. We were a very volume-driven kind of top line growth company. And in a very capital-intensive business, that's not always a good thing. So we feel that we need to adjust that a little bit. And I think if you look to how we have handled, for example, pricing over the last 12, 18 months, where Heineken has been quite assertive, basically without exception everywhere in the world in terms of really making sure we get the pricing that we need. Sharper performance management. There was a little bit of a simplistic way. If you delivered your volume growth and your volume share and your absolute operating profit, you were good. We are nuancing that. We say that's too simple. We call it the shape of the P&L. -- it's -- if you drive your growth by diluting your gross margin, you will get in trouble. If you drive your operating profit by diluting your marketing sell, you'll get in trouble. So -- but that's a big change. It's a more nuanced picture. It's a more nuanced performance dialogue that we're having with the operating companies. And again, we'll speak to that in more detail. I've spoken about productivity and how important it is and how it's simply part of doing business and running a tight shop. And last but not least, it is sharper resource allocation. In the past, at Heineken, when you ran out of capacity -- you got a new brewery or you got a new packaging line. Now we really start to ask questions, what's your economic profit? How much value creation do you have after taking capital into account? Is this a place where we want to allocate more capital or not? Very new to us as a company, but it's also really about upping our investments behind our brands and customer relationships. One of the things we have changed this year, as an example, is making the bonus payout on operating profit conditional on spending your marketing selling budget to really send a signal that, again, you can't cut your way to your operating profit target. So there's real change in every part of the growth algorithm. Yesterday, deliberately, we did the pre-release also to get some of the short-term questions and concerns that may have been there out, I hope, and from what I gauged last night that was well received. In the Q&A, particularly tomorrow, when we have Harold, we can address any remaining part -- it was really meant to provide clarity and that despite a very challenging environment, we reconfirm our operating margin guidance for this year and our operating profit growth for next year. More relevant, I find efforts for [ chasing ] strategy meeting as we have these 2 days is our long-term promise. And again, we measure success by all 4 quadrants of our Green Diamond so what we promise and what we aim to deliver is superior, but more balanced growth with a step-up in investment. EUR 400 million of ongoing productivity improvement, so we can deliver operating leverage over time, disrupted in the short term with all the energy cost and COVID before. And that we really subscribe to the notion that your revenue should be growing faster than your profit over time. More [indiscernible] that we have expressed on sustainability and responsibility. This is where we are. I think we're still early days in EverGreen. Over the last 2 years, we have set that clear course. We built an amazing team, not just our global executive team, our Global 150 leaders team. We're now in the phase of really deploying EverGreen, mobilizing the organization, very encouraged by those organizational climate feedback that is starting to be well understood and received and to start deliver on the 5 priorities. And that's what you can hold us accountable against so that ultimately, we start to generate sustainably, consistently that long-term value creation. And we do this in the middle of some crisis navigation, but we have our eyes firmly on the future. And on that future, what I took away from speaking with as many as I could amongst you last night, is that we are very passionate about this company. But many of you are incredibly prescient about us as a company. Many of you are long-term investors, some longer than I've been in the company. And that gives us an incredible sense of responsibility. And I hope that what you get out of these 2 days is a validation that the company is in good hands, that we have a clear direction. And then we will continue to build on the shoulders of those who came before us and continue to deliver value for the long term. Thank you very much, and wish you an amazing 2 days together. Thank you.

Made it. It's great to be here. I'm James Thompson. And one of the great capabilities we have at Heineken is an amazing photographer. I don't know if you can spot the difference between what's actually in front of you and what that very talented gentlemen managed to create, create here. As Dolf pointed out, I'm relatively new on the block here. I started my career at Unilever longer ago than I like to think. Spent 20 years -- 24 years, in fact, at Diageo in Europe, in North America, in Asia for a long time. in managing director jobs and marketing innovation jobs based around the world really. And I spent a little bit of time in the beauty industry. Here's our talented photographer. I spent a bit of time in the beauty industry, before I got a call and saying, look, they're doing this thing called EverGreen at Heineken. And we think you might be interested in doing that. I found that the agenda that Dolf just set out for you is one of the most exciting I'm seeing in consumer goods at the moment. Also, I met all of the executive team as part of the process. And I thought I really want to work with these people. A couple of them I've worked with in different [indiscernible] as before. And so I've got to say, it's a fantastically comradely environment with good debate and better alignment on the agenda that's hugely exciting, and I'm delighted to be here. And so what am I going to talk about? I'm going to talk about shaping the future of beer and beyond. We call this our dream. And it's important to win the hearts of consumers. We put that right at the center because it's a consumer-centered vision. I'm going to talk about the beer category and why we're excited about it and consumers in that. I'm going to talk about the things we're doing to start shaping the future of this category and beyond. I'm going to talk about the power of our brands and how those are growing from strength to strength. And I'm going to sort of wrap it up together with the Heineken brand and look at the superior growth we're getting out of that and why we're getting it. Now as Dolf said, we love beer that consumers more importantly, also love beer. It's the highest penetration alcohol category in the world. It's the highest consumer spend category in the world. And it's one with the fastest increase in share of throat in the world, extremely healthy in the alcohol context. And I think that what is well known is the left-hand side of this chart. The fact that in the emerging markets, beer is aspirational. It's got the fastest-growing share of throat. And we look at more than 1.5 billion new emerging middle-class consumers over the next 10 years. I think that's well understood. What may be less well understood is the growth opportunities in developed markets. Because if you look at the absolute volume growth that's coming from the growth pockets in developed markets, whether it's premium beer, 0.0 or beyond beer, that absolute volume growth is higher than the total growth in developing markets and just have a look for a moment at 0.0 beer in developed markets. It's around half the total growth we're getting from all beer in Latin America. So there are huge pockets here and most of this, by the way, is in premium. Now Dolf showed this chart. In our vulnerabilities, we see opportunity. So we index high in our share of high energy occasions, which means we've got an opportunity in lower energy occasions. Why can't we capture business in there. We have penetrated higher with men than with women. No reason for that, plenty of opportunities there. Beer occupies a very narrow profile for taste, at least lager does and that is about 90% of the beer category is lager. No reason why we can't expand our opportunities there, too. And while as I showed you before, we do extremely well in premium. Spirits have shown that you can stretch your category even further. And so we have opportunities for more margin and more premium opportunities as well. So in our challenges, we see huge opportunities for growth. And that's what I'd like to talk about now, the shifts we're making to deliver the superior balance growth that Dolf talked about. We've got a very, very strong foundation for growth in this company, I think, is well documented. We really do understand beer consumers. And to that, we want to add a deep understanding of total consumer demand in alcohol-appropriate occasions. I'll talk about that in just a moment. From differentiated brands, strong brands, we want to add a little bit of focus on products and add more differentiated in products to appeal to more occasions, more consumers across the spectrum. Strong reputation for volume growth. We're now putting a lens and also driving value growth out of that volume. We've got very well-documented history and passion for brand building. It's one of the things you really noticed when you walk through the door, people talk about bleeding green or whatever color of the beer they're working on it happens to be, to which we want to double down and really spike in the areas of creativity and marketing and also the science and analytics that underpin it, things which are nonnegotiables to be excellent at in the modern marketing environment. And we want to build on the success we've got by being local, as Dolf talked about, to being very much more intentional in terms of how we share from each other, network, learn so we can reapply and scale fast. Let's look at how we're expanding our view of consumer demand. We have an insight program and way of looking at the market that reframes completely where we compete from beer to all alcohol-appropriate occasions whether or not alcohol itself is consumed in those occasions. And we find, depending on the market, these tend to be 10 to 12 of these what we call demand spaces. And it's -- there are some local differences, but they very much are global patterns. And by driving deep insight into these demand spaces, we understand consumer types, we understand what occasions, we understand the location, what people are doing at that time, what their motivations are and critically, what type of products best fit their needs in those demand spaces. We find by analyzing this and looking at that as our addressable market, we have more than doubled the revenue size of our addressable consumer opportunity. Here are 2 examples of what that looks like. The first is portfolio optimization. There's a market here, one of our big OpCos has optimized its portfolio as a result of these insights. Initially, it had 9 brands focused on about 1/3 of the demand spaces, clustering around 30% of the demand. They found it was more effective to reposition their portfolio to have 6 brands targeting 70% of demand. That means more growth but also more efficient and more effective growth. And that strategy is in place in that market now. The second thing that we can do out of this is identify white or green spaces, if you like, for innovation. Because if you look at this demand map in these 10 to 12 demand spaces, beer does really well in about 40% of the areas of consumer demand. And it does okay in the rest of it, but there are clear opportunities for innovation and product development in areas at the moment where sometimes other drinks or mixes do a little bit better. So we're not just excited by how we can optimize our portfolio. We're really excited about the white space that we can take our products and our brands into. And that's why we're boosting our innovation. We're putting up innovation hubs in key centers around the world to scale up the ideas that we see to create that kind of network that Dolf was talking about. But also to work on the product opportunities and the big long-term opportunities indicated by the white spaces. We've really, over the last few years, taken an intentional approach to scaling our launches, first of all, with Heineken 0.0 and more recently with Heineken Silver, huge success in Asia Pacific. We'll talk about the great start we've had in Europe. We're already in a lot of the Americas, and we're going to the United States next year. But it's also on our local jewels that we're learning, sharing and reapplying. For example, with the non-filtrata proposition that was started with Ichnusa in Italy and has now moved to our Aguila brand in Spain and also into brands in Brazil and beyond. The outcome of this is we've started to shape the category and beyond. And we look at this sort of bow tie representation as the outcome of this work. Now right in the middle of this, of course, is our core business, core lager. But if you look across this map, all these products that you see were launched in the last 4 to 5 years by us. And there's a nice link here to the tasting opportunities you're going to have later on in this program. Now if you look at the 2 circles at the bottom that they're representing both our total revenue this year and our revenue from innovation this year. And what you'll notice, as you'd expect, is our total revenue this year is still heavily characterized by core lager around about 80%. No surprise there. But if you look at our innovation revenue, you'll find it's much more balanced, much more tilted to expand and beyond beer. And what that will do as we intend to keep that going with our innovations year-over-year, is it will shift our mix over time. Now this is all driven by our 3 growth priorities, which are part of our shaping the future. The priorities are scaling premiumization, leading category premiumization with Heineken, but also at scale through our strong portfolio, and I'll talk about that shortly. Secondly, pioneering the growth in Lo and No. Pioneering the growth and capturing a strong share of that. First, with Heineken 0.0 and then expanding the category and portfolio. This, of course, leverages our route to market and our production capabilities and our product development capabilities in a very positive way. And then to explore beyond beer, leading and shaping with cider, innovating and extending our beer brands and transforming our portfolio and our capabilities, for example, pending regulatory approval with the Distell business. What is in common across these 3 growth priorities? Firstly, these areas are growing faster than the beer category, much faster than the beer category. But secondly, they're significantly more profitable than the average of our portfolio today. I'm going to look at them in turn. Let's start with premium. Premium is approximately 25% of category volume. By the way, it's about 32% of our volume and over 40% of our value but premium has been growing consistently. If you look back over the last 20 years, it's been growing at twice the rate of other beer. And if you look at that time period, in that time period, there's been pandemics, financial crises, wars, the growth of premium has hardly missed a beat. It's just consistent that demand for premium beer just keeps growing. It's growing at about twice the rate of mainstream and economy. And clearly, as you can see on the right, it's more and more relevant in emerging markets than other alcohol categories. We clearly have led the way in premium over time and now, shaping this category. Our volume is higher than the total. But if you look on the right-hand side, you see 3 markets -- 3 big markets where since we have entered those markets with intent, the premium segment has grown explosively. And what's more, we've gained the lion's share of the growth in those markets. When we enter a market, we premiumize it, and we gain the leading share of that premium growth. And it comes from a diverse range of brands. Clearly, the Heineken brand is the one that everyone knows and everyone talks about. However, our international brands portfolio grew 38% between quarter 3 this year and 2019, respectively, significantly ahead of the mainstream and economy program. Several of these brands are now becoming multi-country or multi-region brands. This is really important because it's behind the growth of the portfolio that we're deploying premiumization at scale. Tiger is no longer just in Vietnam and Singapore. It's across much of Asia and turning up in the Americas and also in Africa. Desperados is no longer Poland and France only across a lot of Europe, and also in Africa. Strongbow is able to travel. Moretti is rolling out across Europe with intent. It's a powerful portfolio and one that's getting stronger and stronger. And part of what is driving this is the fact that this is where we're focusing our above-the-line marketing or consumer-facing spend, if you like. As you can see, we've always over-indexed here, 1.7x the rest of our portfolio in 2017. But while the absolute total has also grown 2.2x that last year. So it's not just growing the amount of investment, it's the focus of that. I want to talk a little bit about one of those brands I referred to. So a brand, perhaps we should talk about it a little bit more. Desperados. Its leading spirits beer for high energy occasions, growing at 10% compound consistently over the last 20 years, where had the rest of its segment. It's a brilliant example of expanding beer, of premiumizing and other benefits of a really differentiated product, something I told you was becoming more and more of a focus for us. It's a brand that really supports innovation. Over 10% of its growth this year is coming from innovation. And it's bigger than any of our RTD brand outside the United States. Now in 80 countries at 160 price index, twice the gross profit per hectoliter than the rest of our portfolio, growing now across our regions. Going to look now at Lo / No, and pioneering there. And the big point I'd really like you to take out of this is that we've ignited the segment and taking a great share of it. Okay. So you can look back over time, non-alcoholic beer as a percentage of the total beer category, the growth actually sort of comes in waves really. About 10 years ago, when we launched Radlers and Cruzcampo 0.0 in Spain, you can see those 2 markets start to really pick up, in the last 4 or 5 years, markets in Western Europe, such as Netherlands and also Poland and other markets in Eastern Europe. And now really picking up in the United States, which is double the size of category since 2018 and Brazil, which is growing almost exponentially. So another wave of growth is on its way. It's accelerating. As you can see on the right, there's lots of headroom for penetration and about half our volume in 0.0 is being sourced from outside beer. We think this category has long-term potential to be around 5% of total beer. It's already exceeding that in some markets. And here's how we're leading that category. We have a share of around about 17%. Our nearest competitor has got somewhere between 12% and 13%. But we're getting 32% share of 0.0 category growth. A lot of that is because we're investing 25% of the Heineken brands, consumer-facing sales spend goes behind Heineken 0.0. We're innovating and consumers are willing to pay the price, which is resulting in strong gross profit per hectoliter for us ahead of our total portfolio. But our model here for growing is really clear. We know what to do, we know how we're doing it. Let's have a look at the United States. What we did with that was we went in very clearly nailed on the head the consumer barriers, whether it's how you look, what it tastes like, where you drink it and so on, availability even. We came in and addressed all of those barriers and we're now the category leaders. Just think of that. We had our share of 0.0 in 2018 was 0.0. Our share this year is 24%. So we've gone from 0 to market leader in 4 years. The key is to crack the barriers to the category acceptance with Heineken and then expand it to other brands and other areas. And we're starting now to innovate really positively in the whole non-alcoholic space. Just a couple of embryonic examples. On the left, just launched in the last few weeks, a brand called ZAGG in Nigeria. It's an energy malt, it adds the sort of our global credibility by being #1 in malt drinks with the nutritional credentials of that segment and it allows us to drive a price premium, just launched, and we've got good hopes to that. In the United States, it's been around a little bit longer, Lagunitas, the world's #1 IPA and has used IPA flavors and hops to add to water in a 0 calories, 0 carbs, 0 ABV, 0 gluten product which is absolutely fantastic. It's leading that segment. 20% or more of that volume is coming from soft drinks. Around about 30% of consumers use this as a mixer. I can highly recommend that myself, by the way. And it is a fantastic proposition. So you can see we're now really beginning to stretch how we participate in Lo / No. Now I'm going to talk about beyond beer. What do we know about this? We know it's the fastest-growing space in alcohol. We know that we're #2 in the world outside the States. We know that should the regulatory approval be given to us, we will be #1 outside the U.S. and #3 globally in this area. And we know that it's all growing, Cider, outside the U.K. also growing fine. But typically, the noise around this is U.S. and Seltzers, sometimes a bit of spirit-based RTD, that's the kind of platter. But what we're really talking about is a very broad and interesting consumer space. It tends to be for products that are more flavored, a bit sweeter, certainly innovative, maybe a different approach to branding with some functional attributes perhaps, perhaps a more natural perception. And as Dolf said, also moderate in beer-like packaging and presentation. This is beyond beer. The base can be anything. The base can be apples. It can be fruit generally, it can be locally grown. It could be malt, it could be ethanol. But the point is that the consumer space is what we want to address and what we want to meet. The consumer space can be addressed in number of different ways. By the way, including with beer. I think you can see from the descriptions how beer can start to address that in some ways. So what we are doing is we're starting with what's in front of us and what we can see, and we're going to expand our lens over time. Here's 2 examples that we like the look of. The first is from the U.K., Strongbow Ultra launched this year. It's low calorie, low carb, natural, addresses very similar needs to hard seltzers. By the way, although launched this year, it is already around 70% of the size of the total hard seltzers category in the U.K., and we expect it to at least equal that size by the end of the calendar year. Its price index is 136 against the rest of the category Over-indexes with 18- to 34-year-olds. About 60% of ultra-shoppers had not bought cider in the previous period, again, bringing in new consumers after premium, higher value, new occasions by understanding the consumer space and addressing it with what works locally. What seems to be working locally in the United States is what we're doing with Dos Equis, a brand that, as you can see on here, the franchise was declining in 2018 to '20, and the core lager brand was also declining over that time period. We've identified this as a brand that can meet multiple consumer demands, and we've launched Dos Equis Lime and Salt building on a ritual that consumers do the way they consume products, Dos Equis Ranch Water, tequila and soda and so on. These launches have helped propel total franchise growth over the last 2 years and also very importantly, reignited growth in the core lager business as well. So 2 very nice examples of how we're expanding and innovating beyond beer that's benefiting our entire business as well. And should the Distell deal go ahead, we will transform our capabilities with some really distinctive brands. Just want to showcase these brands a little bit. You may not have seen them on your travel, but in South Africa, Savanna is an iconic brand, and it's also in 19 other countries. It's got worldwide acclaim for its marketing. It sells at a premium to beer. Bernini is a grape-base RTD, which has doubled in size since 2016. It sells at a premium to beer. 4th Street is the #1 wine in Africa. It has 7.5% alcohol by volume. It sells at a premium to beer. And we add these capabilities to what we already have very strongly in the U.K. and in Brussels in Belgium, and Western Europe. I think we're going to have a powerhouse in beyond beer and technology here, which will help us really drive even further. That's the end of the look at growth priorities. I want to now move on to look at our brands. And I've used this as an illustration to kick us off with Birra Messina, our beautiful beer from Italy -- from Sicily. As a great example here of how brand power driving that delivers more valuable growth. Because in the last couple of years, we've increased our brand power by 50 index points. That has been driven by the core measures of being meaningful, which is really relevant and different, which tends to mean worth paying for by meaningful and different growing significantly in consumer polling. That's helped us driving a price advantage, price growth over that time and of course, value share gain as well. That creates the financial capacity to invest more behind the creative work that drives brand power, sends a virtuous circle around again. But this is not just happening at that local brand level. This is happening across our portfolio. We're building an advantaged portfolio of great brands where our brand power is greater than our market share. That indicates a business built on consumer pull with further opportunities for growth. And over the last couple of years, our brand power index on our strategic brands, that means our core business has continued to grow from a strong point. But if you look at our game changer brands, the brands which are really doubling down on accelerating now to become our strategic brands in the near future, that is really ramping up. Our brand power is growing for our largest international brands compared to our competition where we compete. 9 out of 10 of our largest local strategic brands are also growing their brand power. And if you look at the pie chart on the right-hand side, it shows in the dark green, the number of cases where our brand power outperforms our market share, consumer pull areas, the gray is where it's neutral. As you can see, around 2/3 of our portfolio is driven by consumer pull. And the reason for that is we're focusing on doing 3 things really well: being efficient, effective and doing great work, which drives results. Let's talk about focus first. In 2017, 80% of our marketing and sales spend was allocated to 29 different brands. Now it's 20 different brands. That shows we're really focusing and driving performance where we think the biggest opportunities exist. And those strategic and game changer brands received around 1.5x the investment of the rest of our portfolio a few years ago. Now it's over double. So really putting our resources intentionally on the biggest size of the price. Doing that in a more effective way, too, working spend or consumer-facing spend, if you like, has gone up 6 percentage points since 2017. So consumers are seeing more of our investment from the same dollars, but of course, the dollars are increasing as well. And we have sophisticated return on investment analyzing techniques. For example, here in Brazil and Mexico, where we're seeing greater than 5% gross profit improvements from reallocation of marketing investment. As a company, we're known for our creative marketing. But what I want to point out here is from that position of strength, we've been really driving that to even further improvement levels. This is independent testing results of all our marketing communications 2018, 2020, 2022 on the 2 dimensions of persuasion and meaningful or relevant differentiation. And you can see they just keep growing over time. And that's a result of discipline and culture and standards and people and the partnerships that we create in our organization. So I thought what I would do at this point is to be quiet and show you a little reel of some of that kind of work. Let's share the film, please. [Presentation]

Hands up who identified every single one of those brands. It's a lovely mix, isn't it, of international and rolling out and local expertise. It's really nice. And Dolf talked about courage being one of the things that we're really [ pricing ] increasingly. And the person who made that Edelweiss commercial, the one -- the Korean one in the woods and so on, I think deserves a lot of praise for their courage doing that. I don't think I'd have done it, but it seems to work. I want to try and pull some of this together by talking about the Heineken brand and talking about shaping the category, it's been doing that for 150 years, and it's been doing it pretty well. #1, beer brand by retail value around the world. Growing or holding share in 7 out of 10 top markets, Growing at 12% revenue CAGR with a margin that's 50% higher than our portfolio average with historic milestones where we're associated with changing the trajectory of the category. It's good news. Our goal is to be restless and keep improving. And that's why the ambition to be the most meaningful that is measured by relevant and different, as I showed before, most meaningful brand with young adult consumers is one that keeps our team on their toes and inspires them to do greater and greater work. The example I'd like to really zero in on here is Brazil. And if you look at this, this is not an overnight success. This is built carefully over years, and then it ignites and hits the flash point, built carefully through 3 things really. Focusing on the credentials and product excellence through talking about pure malt and why that's better. In fact, it created such a success there that others started to follow. Excellence in on-premise and experiential marketing. And you can't really go to a great bar in Brazil without experiencing a fantastic thing from Heineken and some of the best festivals and events and so on to put on there and that people look forward to them, they're a cultural phenomenon. And as you'd expect, perhaps, some great advertising and some great PR. The scores that you see here around meaningful difference and salience remembered recently are quite remarkable, and you don't see those on very many brands at all. And you see the profitable gains that we're making from competition, tripling our value share over this horizon with a 40% CAGR since 2017. The point I made earlier about wanting the brand based on consumer pull is still relevant. Our brand power in Brazil is still well ahead of our market share, showing the opportunity for a profitable acceleration even continues there. And more broadly across the world, part of what's driving our brand strength is creativity. And you don't just have to take my word for this. This comes from Kantar, independent survey done every year. For the last 2 years, the Heineken brand has led global equity value growth in our category. And you can see the results here are just this year. Part of what's driving that is our continued focus on creative marketing, as I mentioned before, that many of you in this room will know that there's a direct externally validated link between the strength of your marketing and your sales, your value and ability to take price. We were the #1 creatively awarded marketer in food and drinks in the Cannes awards this year and in the top 4 brands amongst some quite distinguished competitors. What drives this is a relentless look at standards, real insight into consumers, the ability to act globally but tailor for local nuances and top spin but also a deep understanding that the brand has the right to participate and comment on the things that it's part of, for example, the Champions League in the way that has wit and empathy and a little bit of a twist, demonstrating open-mindedness without being preachy. And I want to show a film that exemplified that. It's called Cheers to All Fans. Let's share that now. [Presentation]

We aired that in the middle of the Champions League final this year. The response is fantastic. And the Heineken brand team aren't in the room today, but the work that they've done that we've had over the last 18 to 24 months has consistently tested in the top 5% of all commercials ever tested or better in many cases, including that one. Now I want to talk about innovation. Let us give the example because we talked about Heineken 0.0 earlier. Let's talk about Heineken Silver, launched with huge success in Asia. You can see some snapshot of the performance in Vietnam, affecting the total brand as well. It's also in Central America and Latin American countries also doing well. And we launched it in Europe this year. We think on a very good understanding, it's going to be the #1 fast moving consumer goods launch in Europe in 2022. And you -- look at some of the things that it's done. In Asia and Europe, more than 50% of the business is incremental to our franchise. 50% of this is incremental. It's attracting Gen Y and Gen Z consumers, including mixed gender audiences critically with a slightly different flavor profile that it has, while still remaining distinctively Heineken. More than 10% of our volumes in Europe so far are coming from completely new consumers to the beer category. It's not your dad's Heineken. But like the rest of our priorities, it is also more profitable than the rest of our portfolio. We're rejuvenating the brand in Europe through this. We're getting new consumers. We're getting new occasions. It's helping to boost our overall brand strength. It's selling #1 launch, building on the strength in Asia, and we're going to see, we believe, huge success for this in the United States when we launch it in the early part of next year, very well-funded. One of the things that gives us huge confidence in the United States is the product test results. Again, I want to draw a link to our new renewed focus on product compared to other big players in the space that it's going into. Heineken Silver wins hands down with consumers. And that's one of the many things that gives us confidence that's going to be a fantastic success. Heineken is also, of course, famous for its sponsorship. What I think is not often known, is if you look at our 2 major sponsorships, one is the biggest and most viewed in the world, and one is also enormous but growing the fastest and getting the more new diverse reach. We are the most recalled sponsors of those 2 big platforms. If you look at Champions League, that where we've been investing the longest, that gap is huge. So the biggest properties, the fastest-growing properties with an increasingly diverse reach and diverse reach not just consumers but also geographically because the growth in popularity of Formula 1 in the United States is a remarkable thing to behold. And behind that, we are going to be really supporting Heineken Silver in this coming year. In November, Las Vegas will be the #3 race coming to the United States and the fourth in the North American continent. And we will be the title sponsor of that with Heineken Silver. It's very exciting and has already been very appealing to our distributor network and to others. So how can I summarize our commitment to delivering superior balanced growth? It's certainly volume growth, but it's also its -- and value growth. Value growth driven by the premiumizing segments that we're going into, premiumizing our brands, understanding revenue management, revenue margin growth more you'll hear. Harold will talk about that tomorrow, you'll hear Yolanda talk about it as a capability. It's something we're really driving into and as you saw with those examples just from Brazil and Mexico, but you see our other examples to really understand the analytics, the return on investment of our activity and driving effectiveness as well as efficiency. So value as well as volume growth. Pricing power as well as share gain. And we -- as Dolf said, we have been taking a lead, taking a bold lead in pricing, and we intend to continue to build that muscle. We're known for driving penetration with consumers, but really doubling down and focusing on premiumization, something I hope you picked up throughout this short talk. Certainly, innovating on core beer but also stretching beyond beer. And I hope by defining that consumer space a little bit more clearly, you can see just how many opportunities there are for a company like us with the footprint that we have. And growing our brand power, which we've been accelerating but also our return on investment. And that's how I look at superior balanced growth and how we look at it across our teams. So what I hope you'll remember about our dream of winning the hearts of consumers to deliver this superior balanced growth. Four key things really. First, it's an incredibly attractive category, which we are reframing and enlarging what we see as our addressable market based on consumer insight and a consumer-centered culture. Secondly, that we are shaping the future of it, with premium with profitable growth segments and with a big focus on innovation, scaled innovation that travels, whether it's on the same brand or similar ideas that can go local in a lot of places. Three, powerful advantage brands, which are traveling with superior brand-building capabilities, which give us an edge across the world and are systemized in our culture, our people and our capabilities. And of course, with our investment, which you can see as we focus it behind our biggest areas of opportunity. And finally, that it all tends to come together with brand Heineken, #1 and still improving, still restlessly trying to get better. It is by no means our only example, as you've seen, but it's a really good one and it's one we're really proud of. Thanks very much.

Thank you very much, James. We have next a break. So we will reconvene to start on the dot at 11. So if you can kindly be seated again a couple of minutes before that, so out of respect for all our viewers that are watching the webcast. So thank you very much. And we're going to stay in this area towards the back, restrooms to the right, to my right, your left. Please, feel free. [Break]

Good morning. It is my real pleasure to talk to you about shaping the future in the beautiful region of Asia Pacific. And I'm afraid that this picture is also a testimony to the talent of our photographer. Let me introduce myself. My name is Jacco Van Der Linden. I joined Heineken in 1999, and since then, have worked and lived abroad. And for the past 23 years, spent around 7 years in Africa, predominantly in Nigeria; about 8 years in Europe, of which 4 years at Heineken U.K., 3 years at Heineken Ireland. And in 2015, I joined the beautiful Asia Pacific region, heading our business in China, initially being part of the setup of our partnership with China Resources Beer. Then I have the pleasure to lead the business in Vietnam. And 2.5 years ago, I succeeded Dolf as President for Asia Pacific. What I will be talking to you today about our 4 blocks. The first block is about the strong APAC growth fundamentals that we have in the region, premiumizing our portfolio. I will talk about fortifying our leadership position in Vietnam and then 2 other markets, which is about unlocking the long-term growth potential that we have in China and India. Now Heineken has a broad presence in Asia Pacific through its operating companies, of which we have 14 through its joint venture partnerships and our export markets. And APAC is an important region to the Heineken Group, delivering 18% of volume, 17% of revenue and a substantial 30% of operating profit. And the numbers that you see here are the reported first half-year numbers of this year. But more importantly, we have been capturing, up until today, the growth in Asia Pacific. If you look at the last 10 years, we had an overall beer market share within the region of less than 3%, excluding China, which has grown over the last decade to 17% of the overall beer market, resulting in a volume increase of 10x, and that has been done by superior organic growth, but also through business development activities. For example, our strategic partnership in China in 2019 with CR Beer, and more recently, last year, where we got majority share of United Breweries in India and control. Now APAC has strong growth fundamentals. The APAC middle class is growing rapidly. Already today, more than 50% of the middle class population resides in Asia Pacific, and it is forecasted that to increase to 65% by 2050. And that's in an increasingly urbanized environment. And we all know that urbanization rate is a key driver for premiumization. And that leads to what we believe is volume and value growth. That's our expectation, to grow ahead of the global beer markets by 200 and 300 basis points, respectively. Now James, before the coffee break, really deeply understanding consumer motivations and needs, combined with core alcohol-relevant occasions. And also, over the last year, we have been doing that in the region, and we have identified 4 main consumer demand spaces. And what is interesting is that in 3 out of those 4 demand spaces, food plays a crucial role. And I will come back to that. And it's very different, for example, Western Europe, where you see that a lot of the core beer occasions are what we call [ wet-led ], but in Asia, food is a companion of the consumption of beer, requiring also different product characteristics for beer in this part of the world. Now based on consumer characteristics and local market insights, we can basically classify our markets in 5 clusters. And we believe that our strategy is adapted to best capture the opportunities that we have in the region. But these opportunities are a little bit different depending on the market. And here you see beer per capita consumption versus urbanization rate, and we can basically distinguish 5 market types with their respective strategic priorities. So if we start at the top left, you see the beer-led markets. For example, Vietnam, Cambodia, Laos, high per capita consumption, relatively low urbanization rates. And there, we have a category role to play, a category role to play to ensuring that beer remains attractive, remains relevant, and we have an opportunity to premiumize the overall category. If we then go one below, there you see significantly lower per capita consumption at a low urbanization rates. So you see the underpenetrated markets, for example, India, Sri Lanka, where we have a different category role there. The role is very much about driving beer penetration in the market. And in the center, you see the big beer markets that of China, where we believe we have an opportunity to premiumize and shape the overall beer category, and especially the top of the premium end where international premium propositions play a key role. If we move to the right-hand side, you see the more mature or sophisticated beer markets like Korea, Australia, New Zealand, and there, beyond beer, plays a more significant role, and I'll come back to that later in my presentation. And then you have in the top -- below, right, you have the low alcohol relevance markets, but with a relatively high share of throat for beer, like Singapore, like Malaysia, and there, we have a role to play to expand beer and overcoming barriers to our share of throat for beer. Now in APAC, we have a dream, and our dream is to shape the future of beer and beyond to uncage the full potential of Heineken in Asia Pacific. Our ambition is to seize a larger share of the growth at attractive operating profit margins. And as reported in the first half of the year, we have operating profit margins in the region of 28%, which is almost 2x of that of the Heineken Group. And we have 4 priorities. First priority is building brands to deliver premium growth, and thereby, improving our mix; second priority is about shaping the category to excite young adults; third priority, winning with customers on- and off-line; and the fourth priority, leveraging our cost-conscious mindset. And through examples, I will be talking about the first and the second priority. Later in the day, Ronald will talk about winning with customers on- and offline. And tomorrow, Harold will extensively talk about leveraging our cost-conscious mindset. Now at Heineken, we believe in building power brands that drive superior growth. And for APAC, I believe there is an opportunity to optimize the EverGreen growth algorithm even further that Dolf talked about before the coffee break. And we deliver the growth algorithm by delivering superior top line growth in a much more balanced way. So that has a volume component, a pricing component and a mix component. And also in growth region, APAC, productivity is important because through increased productivity, we have, over the last 3 years, been able and will continue to do so to fuel the growth engine that we have in APAC and then delivering good profit margins for the group with solid returns on capital. Now pictures say more than a thousand words, especially motion pictures, so I'd like to give a couple of examples how our local jewels and our international premium propositions make Heineken roar in Asia. Video, please. [Presentation]

I get excited by watching these pictures. Let's move to the first priority, which is about building brands to scale premium. And premiumization has been a key driver for category value over the last decade, and we believe will continue to be so. And we have been leading and shaping the APAC premium segment, where, with high single-digit growth, our portfolio has been outperforming the APAC premium segment. And we believe that is best done through a combination of our international blockbuster brands together with our local jewels, one of which you see on the right-hand side, Bintang from Indonesia. And apart from driving premium, we believe we have an essential role to play in rejuvenating beer for a new generation. And what we have learned is that in APAC, 85% of beer happens with food, in many markets. So easy drinking is a core functional need, requiring to have a lower ABV, significantly lower bitterness levels. A lot of the domestic mainstream brands had already captured this opportunity, but we can reignite the segment by premiumizing this. And this is basically the consumer insight that have led us to develop Heineken Silver, which is a proposition that was born in Vietnam and in China, launched in Vietnam only in 2019; in China, 1 year later. Silver and its sister Tiger Crystal borrow from the blockbuster brands Heineken and Tiger, borrow from the overall brand awareness and brand power, but then again, also build to revitalize the overall proposition. And what we see in the region today is that already Heineken Silver, after 2 to 3 years, is 1/3 of the overall Heineken franchise, and Tiger Crystal is already 1/4 of the overall Tiger franchise. More importantly, 50% of the brand growth that we are experiencing this year is coming from these 2 propositions. Now that is supported by an increase in investment. And that's a combination of increasing the overall marketing and sales investment as a percentage of revenue, but also further optimizing the working spend that James talked about this morning. And that results basically in a doubling of our absolute marketing and sales spend in 2022 versus 3 years ago. Now let me talk a little bit more about scaling with that build and borrow model, and give the example of Heineken Silver. Here, you see the total Heineken and Heineken Silver trajectory since 2013. Obviously, there's the COVID effect that you see there. But also, as James illustrated, you really see that the overall Heineken brand franchise has greatly benefited from the introduction of Heineken Silver, predominantly in Vietnam and in China. And based on these learnings that we are seeing, supported by local relevant communication, we are currently rolling out Heineken Silver across the regions, in markets like Singapore, and even more recently, a couple of weeks ago, in India. Coming to our second priority, shaping the category to excite young adults. We have also started to expand beer beyond core lager and beyond easy drinking lager into Edelweiss. For example, Korea is now a top 3 market for the Edelweiss brand. Globally, cider is an important one, for example, Australia and Vietnam are both top 10 markets within the group for cider. And on the right-hand side, you see RTDs that have been launched in Australia, New Zealand. And for a market like New Zealand, for example, RTDs already account for 11% of their net revenue. So I've talked about premiumizing our portfolio and revitalizing the category. I would like to talk about how we bring our superior growth priorities to life in the different APAC subregions. We have categorized them. It's a region with a large diversity. And I want to start with Southeast Asia, which is really the stronghold that we have within the region, and it's a stronghold within the Heineken Group. It's a beer market of over 100 million hectoliter, with a profit pool of more than EUR 2 billion, where we have either a #1 or a #2 position in 7 out of 9 markets. We strongly believe that we will continue the growth momentum to strengthen our leadership position in this important stronghold within the region. And I will talk about Vietnam being one of those markets in Southeast Asia, amongst Indonesia, Malaysia, Cambodia, et cetera. The second subregion is South Asia. There, we have a different role to play. That's really about driving long-term category growth for sustainable profitability. Markets like India, Sri Lanka, and also India today is one of the markets in focus. Then we have our China JV, which is about leading the premium segment and shaping the premium segment, also one of the markets in focus today. Then we have Oceania, which is about expanding the category in the Pacific Islands and unlocking growth in Australia. And then we have North Asia, where we are changing our business models a bit in order to gain market share in what is a very profitable set of markets. Now let's start with Vietnam, and about fortifying our leadership position in Vietnam. Vietnam is an EUR 11 billion market. This is retail sales value to be clear. It's a 46 million hectoliter market that has been growing by 3.6% CAGR over the last decade and where we have become the overall market leader in quarter 4 of 2019. And when you look at the 31-year journey in Vietnam, it's quite an impressive journey. That all started 31 years ago at Hoc Mon Brewery in Ho Chi Minh City. And yes, it's quite amazing to present a 25% volume CAGR over this period. Now Heineken Vietnam for many years out of that 31 years has been a premium segment player, really focusing on urban areas. And only 5, 6 years ago, there was an intentional strategic shift to move from a premium segment player and to go for a broad market leadership, which was then achieved in 2019. And there are important drivers for future growth in Vietnam. Urbanization rate is still very low. The outlook on GDP increase is still very solid, 6%, 6.5% as an outlook, and the GDP per capita is only USD 4,000 today. So we see enough headroom for further growth in a market where beer is still very sexy, very appealing to a large group of consumers. But we also see further opportunity of uncaging the full potential. We have an opportunity to strengthen our leadership position in premium, and at the same time, using the system strength that the organization have in order to expand into mainstream. And there's an opportunity to further move from urban areas to rural, and we have an opportunity to expand in the north. Premium, that is basically -- the Tiger brand is the big blockbuster brands that we have in the market. If you look from 2016 to this year, we have about 90% market share in premium, and the volume increased by 50%. Very much driven also by the build and borrow innovations that I talked about, Heineken Silver and Tiger Crystal, which are really fueling a new growth curve for these 2 brands in the market. At the same time, whilst we have a strong engine 1 in premium, we have also started to build our engine 2, our mainstream portfolio. And what you see in the middle of the slide is that actually, the shape of our portfolio has been evolving to a more balanced model, whereby we want to get to broad market leadership. And if you look at the right-hand side, we have been able to triple our volume over the last 5 years on these regional brands like Larue, like Bivina, and we have launched Bia Viet Beer Vietnam a couple of years ago, which is growing handsomely, increasing the mainstream market share since 2016 from 5% to 16%. Now with that, we believe there are further opportunities for geographic outlet coverage and portfolio expansion. If you look at on the left-hand side, historically, Heineken Vietnam has been very strong in the south, but with relative underrepresentation in the north, where there is an asymmetric penetration that represents an opportunity. We have an opportunity to accelerate outlet coverage through our eB2B, and Ronald will talk about that a little bit later in the afternoon. And really, leveraging on the system strength of Heineken Vietnam, we believe there is an opportunity for continued portfolio expansion because we still see underserved consumers and underrepresented occasions in the current beer landscape. So that's the exciting opportunity of Vietnam. And let me now move to the second focus market, that of India, which is a EUR 10 billion beer market, with a population of 1.4 billion people, a relatively small beer market of 28 million hectoliters that has been experiencing a CAGR growth of 3.7%. But we have United Breweries, who is the market leader in India with the iconic Kingfisher brand. As I mentioned, 2 liters per capita, that is relatively low. There are some parallels to draw with China 20 years ago. But I think India is more of a continent than a country. So these are averages. And to really understand this large and complex market, you would have to de-average, I think, the market. We clearly see opportunities to unlock future growth. I think there is an important job to do to improve the beer category penetration, and we would have to do that, I think, with all the beer players together, and we have started initiating some initiatives for that. Whilst we are a market leader and very strong in mainstream, there's an opportunity to extend that market leadership and gain fair share in premium. And I believe that with the expertise that we have within the Heineken Group, we will be able to do so. We've recently launched Heineken Silver, where we saw same dynamics as we've seen in other parts of Asia, where there's also a consumer preference for less bitter beers in the market. So we have high hopes for that. And we have a job to do, I believe, to strive for a more fair regulatory environment for beer. Now having said that, there are obstacles to overcome. Beer has only a 10% share of throat of total alcohol. The spirits market is significantly bigger than the beer market today. The beer price is also relatively expensive versus that of spirits, has very much to do with the excise regime. And the outlet universe is relatively small. If you compare it to the average FMCG universe of 10 million, there are basically 90,000 licensed outlets that we have in India. And with alcohol penetration, for example, only being 1% amongst women. Then we have China. Big market. EUR 65 billion beer market retail value. An overall market of 488 million hectoliters. A 6.2% CAGR growth in the premium beer market. So the overall beer market has been flat to declining a little bit. But since 2015, the beer market has been premiumizing at pace, and we have in CR Beer a market leader in China. We are very pleased with the partnership with CRB. It has, despite all the COVID measures that are very strict and are still in place today, really been able to unleash the performance of the Heineken brand since 2019. And since 2019, the Heineken volume has tripled, with an increased momentum on the brands that we still see today. And that has made China this year our #3 Heineken markets globally. And you can be assured that they will go for the #2 position as quickly as possible. Now our share of profit contributes mid-single digit to our earnings per share for the Heineken Group, and we have seen a very solid EBIT growth that has been driving that, from 2019 to 2021 for CR Beer of 26%. And with that, I hope I have informed you a little bit more about shaping the future in APAC. Key messages to remember, strong growth fundamentals. We are continuing to shape and premiumize the beer category in APAC, fortifying our leadership position in Vietnam and on our way to unlock long-term growth potential in both China and India. Thank you very much.

Good morning. Very nice to meet all of you. I know some of you, and I'm very pleased that, today, I will present to you the shape, the future of Africa and Middle East. I will introduce myself. My name is Roland Pirmez, Belgian, French speaking. I think that you guessed. Brew master, supply chain background. I work always in the beer industry. I spent 11 to 12 years of my life in Africa, 12 years in Asia, 6 years in Russia. And from 2015, I'm the Regional President based in Amsterdam. And I have 27 years work in Heineken. Just for the anecdote, before that, I was working for Castel. What I will speak, I will be talking to you today is really to shape the future in AMEE. First, I think in the region, we have been taking some key transformation that's been taken into the region. The first, of course, is to shape the future of beer, led by premium, but also beyond beer. Leveraging our footprint, a very strong footprint. I will also share with you some good example, development and progress of our consumer-centric portfolio. And I will also share with you some key transformations in some key opco like Nigeria, like Ethiopia, like South Africa. Of course, big transformation for the region is the potential acquisition of Distell. I say potential because the completion of the deal is still subject to the regulatory approval. Of course, with the potential acquisition of Distell, we strengthened a lot our #2 position in South Africa, but also we are able to build and create a certain African beverage champion covering 12 countries. Our footprint, we have a very strong position in Africa. We start operating in Africa in 1923, in Kinshasa. Today, we are operating in 18 countries, and we have a very strong #1 position or #2 position. What I would like also to mention that the big shift of the region 5 or 10 years ago, the region was Nigeria, Nigeria, Nigeria. Today, we have a more balanced portfolio of brands. Today, we are talking about Nigeria. Of course, we are talking about South Africa. We are talking about Ethiopia. And as you know, we are quite in a volatile environment in Africa. It is very important that we have up and down, we are used to, we have to manage it. You will see that Nigeria is a little bit down. But in the other part, Ethiopia is down. We have plenty of example, the evaluation in Egypt is down. At the same time, we have been able to increase the price in Rwanda, it's up. As a region, we represent 13% of the operating profit, 14% of the net revenue and 80% of the total volumes. Today, we are the leader, and we are shaping the premium segment in Africa, led, of course, by Heineken brand, with 7 million hectoliters, also driven by local production. Today, we are producing Heineken in 10 countries. And recently, we started the production of Heineken in Kinshasa, DRC. How are we doing in Africa? Africa is the fastest-growing region in global beer, as you know, drive the global beer growth. 79% of the global beer was coming from Africa over the last 5 years. How are we doing? Over the past 20 years, we quadrupled our volumes, and we increased our market share from 11% to 20%, organically and inorganically. Strong category fundamentals will fuel the future growth in Africa. Of course, you know the key drivers of our business. First, of course, is population growth. Africa, 60% of the global population growth by 2050 will come from Africa. You will have 1.1 billion additional people in Africa as a consumer. Very young population. You can see the median average age in Africa is only 20 years old. A strong economic development. You see the forecast expected for GDP growth of 20% GDP growth from 2015 to 2025 in Africa, triggering also the urbanization level from 44% to 59% in 2050 with mega cities. Urbanization triggering also the premiumization of the beer markets. On the top of that, a huge significant headroom for growth in beer in Africa because of the low starting point. In Africa, we have a very low consumption per capita, only from 9 liters per capita per year versus average -- world average of 25. Huge opportunity headroom for growth. Accelerating our transformation and meeting growing consumer customer needs. Dolf already mentioned it, our ambition, our dream is really to create more value from the long-term growth potential of the region by delivering balanced and profitable growth. There is a big shift. Growth is there. We have been growing. What is very new is balanced and profitable growth. This one is the shift. We have 4 priorities, in line with the EverGreen strategy. First, of course, is scale premium and shape the future of beer; unlock the new consumer opportunities through beyond beer, James talked a little bit about it; and of course, accelerating our digitization and strengthen the grip over to the consumer; of course, on the top of that, improve our profitability and capital efficiency. As you know, Africa is quite capital-intensive. Nice. Now I would like to show you some vibe of Africa consumer. [Presentation]

Two things: vibe and opportunities. The first priority is a scaling premium, is transforming the portfolio and, of course, value capture in AMEE. First, you can see the premium segment is growing twice faster than the beer market in Africa, by 6%. We have been outperforming this growth by 8%, and we captured 46% of the premium beer growth in Africa over the past 5 years. Of course, premium is also delivering superior P&L. And there, you can see that, of course, the premium segment, we have 50% additional revenue per hectoliter versus the mainstream, and we have twice gross profit per hectoliter versus the mainstream. Of course, the premium segment is led by Heineken, but not only by Heineken. We have a very nice brand like Windhoek in South Africa and Namibia, Desperado in many markets, and you will see also Tiger in Nigeria. We have also some nice premium brands, local premium brand in Ethiopia, and the name is Bedele Special. Beyond beer, the second priority. Africa is a very exciting place for beyond beer. James has been talking about it. A huge opportunity to reach new consumer and new consumer needs. First, I would like to talk about the malt category. Today, we are the leader of the malt category, with 29% market share. Of course, Nigeria is big, but we are really growing and shaping the category in other markets, like in DRC, like in Rwanda. On top of that, we're expanding the malt category, by flavored, example in Nigeria, but also with the energy malt. Energy malt, we have already a successful track record in Ivory Coast and DRC with the Rhino brand. And James mentioned it. We just launched a very exciting energy malt proposition in Nigeria, the name is Zagg. It is not only a health and functional benefit to the consumer, it's also an emotional connection to the consumer. We are very excited about this opportunity. The second opportunity, of course, it's beyond beer, what we call cider and RTDs. With the potential acquisition of Distell, we'll be #1 player in this category, with 38% market share, mainly driven by cider, but also the broader portfolio of Distell. James explaining to you the RTD's grape-based or wine-based, also Bernini, but also the wine, especially 4th STREET, or Distell has been really reinventing the wine category in Africa with a huge potential. And there, we have the potential with the option to roll out Distell portfolio more broadly beyond South Africa, beyond Africa. Improving profitability and capital efficiency. Despite, I will say, a significant economic social disruption in Africa over the last 5 years, we have been able to increase the operating profit. We have been able to have operating margin stable and now slightly improving, of course, driven by revenue volumes, assets from new management, also premiumization, but also by reducing of fixed expenses, percentage of the revenue, by implementing productivity and cost-saving initiatives. Magne will touch a little bit some cost initiatives in Nigeria. Most important is while we're investing to support the growth and to capture the growth of Africa, we have to be mindful about 2 things. First, in Africa, we have to be prudent. We are investing just in time and not out of the curve. The second thing, I think, is very important. It's how you allocate capital across the region. We have made a very tough choice of capital allocation in the region, knowing that the region is very capital-intensive. And you can see the result that we have been improving the capital turnover, from 1.4x in 2016 to 1.8x in 2021. Now I will talk about 3 key transformation in the opco. The first one, of course, being Nigeria, where we have really a transformative turnaround in Nigeria. And Nigeria is a very exciting market, the second biggest market in Africa. For us, the biggest operation in Africa, EUR 2.6 billion revenue, 16 million hectoliters, and average growth of 2.8% over the past 10 years. We have a very strong #1 position. We have a very strong portfolio of 19 brands. We have 9 breweries and 1 malting plant. We started operation in Nigeria in 1946. We have a long experience in Nigeria. Nigeria market, exciting but quite challenging economic environment, and we have been through a profound transformation in Nigeria. You see the history of the profit pool in Nigeria. Until 2015 -- sorry, '13 was really an acceleration of the profit pool driven by volumes, but also driven by very high price, low investment behind the brand, low grip on the route to consumer, it means low cost, what we call a little bit of over-earning situation. 2014, wake-up call, for 2 reasons: first, economic crisis, devaluation linked with the commodity price; the second reason, in entry of SCB, fierce competition, followed by ABI with a real price war. What we've been doing, Nigerian Breweries is doing quite well. We [ hold our ] market share. And you can see on the graph, we have been and we remain the only big players being profitable in Nigeria. We have been through a profound transformation in Nigeria. First is the portfolio. 2011, 2 mainstream brands, high price, low investment. We have been transforming -- totally transforming the portfolio with a more consumer-centric portfolio by giving more choice to the consumer, choice of price, choice of [ pack type ], choice of regional sensitivity, taste. And now you see our portfolio, it's mainly 2 mainstream brands, Life and Goldberg. But also what we are very proud is we really shaped and built the premium segment. You can see today, we own -- we have 80% of the market share of the premium segment, of course, led by Heineken brand. Today, Heineken brand in Nigeria is #1 brand by value. But also you can see on the graph, a very nice growth of the Tiger brand and recently, a very nice growth of Desperados premium flavored beer. Also an exciting opportunity in Beyond Beer and mainly flavored beer. You can see -- James already explained. It's a very fast-growing category with a forecast of 28% growth from '20 to '25, reaching new consumer and specifically female consumer and especially in Africa. And there, we have a very strong portfolio. We have really well-placed portfolio with Desperados, of course, as premium, but also with Star Radler and more flavored proposition. From '19 to '21, we have been growing by 29% this category with our portfolio. We have also transformed our route to the consumer and by the way, with a lower cost. First, what we have done, we changed totally the distribution incentive structure from a sell in to a sell out. Today, we are covering 80% more outlets than in the past, enabled by digitization. Today, we have 90% of our revenue online in Nigeria. After this, Ronald will go a little bit into details it's more an omnichannel touch point including telesales, including presales. But quite impressive what we have done in a very, very fragmented market. On the top of that, we increased a lot the Net Promoter Score, NPS, to 77. In the same time, we have been structurally reducing the fixed cost of the company. The total fixed cost of the company was 36% in 2015. In '22, it's 28%, despite the devaluation and inflation. The great story of Africa, Ethiopia. Ethiopia is the third biggest market in Africa, EUR 2.6 billion retail sales value, 16 million hectoliters, average growth of 16%. It's huge. Of course, with a huge potential because economic development but also a huge population of 120 million people. We are #1 in Ethiopia with 3 breweries and a very strong portfolio of 7 brands. I love this title, from entry to market leader in a decade, in 10 years' time. We started operation in 2011. We acquired very small brewery, Harar and Bedele, and we built a big greenfield brewery in Kilinto, close to Addis Ababa. And you see what we have done. In the first 3 years, we multiplied by 5 the volumes. The following 4 years, we tripled the volumes. And today, we are #1. I would like just to mention one thing. As you see, 2020, a decline of the volumes. It's not because COVID; because it was tripling excise tax in Ethiopia led, of course, to a price increase or consumer price increase and a decline of the market. There, you see the resilience of the market. You see recovering very, very quickly. We transformed the portfolio. But I would like to say, the success of Ethiopia is really the uniqueness of our proposition in Ethiopia and our position in Ethiopia. We are the only company with a broader portfolio of brands, and with 3 breweries, it means a regional footprint. Today, you see the transformation of our portfolio. We have been moving from 2 small regional brands and 1 national brand to 2 national brands and regional brands. And we have been also shaping and building the premium segment that didn't exist at all in Ethiopia with Heineken brand but also with Bedele Special. To compare to the competitors, we have competitors with 1 brewery with 5 brands, and we have [ 4 ] big competitors with 4 breweries but 1 brand. We have the unique position in Ethiopia. South Africa, the biggest market, of course, in Africa, with EUR 5.3 billion retail sales value, 41 million hectoliters, average growth of 3.2% over the past 10 years. We have #2 position in the beer category in South Africa. The story of South Africa, to refresh memory, we took back the Amstel brand from SCB in 2004. We have been through a joint venture with Namibian Breweries and Diageo until 2014 with the name of brandhouse. In 2014, we decided to control our destiny in South Africa. We fought Diageo and by revisiting the structure of joint venture with Namibia. From 2015, we control our destiny in South Africa, and you see the result. A very nice growth. And you see, of course, a huge gain of market share, from 8% market share to 18% market share, of course, led by Heineken brand. Today, the Heineken brand is #1 brand power in South Africa. We have volumes average growth of 14% despite the ban of alcohol in South Africa. And of course, we have superior price and revenue per hectoliters with a price index of 150 versus the average of the OpCo. Distell, a lot of you have seen, of course, in addition of a very complementary portfolio with a broader and large portfolio offering a lot of choice to the consumer. I would like to mention that we have also a very complementary route to the consumer with Distell by 2 things. First, by reaching more customers. We will increase by 25% the outlets serviced. On the map on the left, you can see we have a very complementary regional footprint of the route to consumer, knowing that we are very strong in the Gauteng area around Johannesburg. But in the same time, Distell is very strong in the Cape Town area, and there, we have a very complementary regional footprint. On the top of that, we have a huge opportunity to enlarge the offer on the Trade Express. The Trade Express is a cash-and-carry close to the consumer. 24 Trade Express from Distell is [Technical Difficulty] hello? Coming back. It's okay. Thanks a lot. And of course, the last but not the least, we can build and we will build a new Southern African champion. The Newco, it means the outcome of the deal with Namibian Breweries and Distell, the Newco will manage 12 countries, of course, focused on Namibia and South Africa. But by combining the route to the consumer, the portfolio of Namibia, the portfolio of Heineken South Africa plus the portfolio of Distell, we will really strengthen our position in many markets by scale, by offering more products, better route to the consumer in many markets and [ you named ] Kenya, Tanzania, Uganda or Zambia. Of course, adding significant scale and unlock synergies. With the Distell deal, we will be a strong #2 for the total alcohol beverage in South Africa with 23% market share -- volume share and 26% of value share, of course, with significant synergies to drive values with a full run rate synergy of ZAR 1.5 billion, around EUR 93 million; EPS accretive within the first year of completion; and margin accretive in the medium term. To summarize, to shape the future in AMEE with a strong footprint and most important, a balanced footprint. We are shaping our portfolio led by premium and very important opportunity of Beyond Beer. You have seen the transformation in Nigeria, Ethiopia and South Africa. And of course, very excited by the potential deal with Distell, with very new expertise with Beyond Beer. And of course, we will build a very nice Southern African beverage champion. I'm excited. Thanks.

Good afternoon. I wish I could say like Roland that I was a master brewer, but stands in front of you an accountant. I started my career in Congo as a financial controller; afterwards, finance director, moved through the Netherlands as finance director; then got my first chance as a managing director in Burundi. After 3 years in Burundi, I moved to Egypt. Egypt, which is a paradise for Beyond Beer because we do beer but also wines and spirits retail stores, so 5 good years in Egypt. After that, I moved for 2 years to France, then went to Mexico. And since 2015, I'm running the region Americas. And my first strategic decision was to close the office in New York and open an office in Miami from where we run all of the Americas from a small, tiny office where we have about 20 people. Now what I would like to share with you today is similar to my colleagues with the footprint of the Americas, the importance not only to keeping the momentum that we have behind our portfolio but also to accelerate it. And then I will talk a bit more about the 3 usual suspects: the U.S., Brazil and Mexico. In the U.S., unfortunately, it's all about keeping momentum. We have to regain momentum, and I will come back on that. In Mexico and Brazil, it is about the transformation of our business. That is not something that we are starting now. Basically, Mexico, the transformation started since day 1 that we got the keys of the company and that is still ongoing. That is such a dynamic environment, such a dynamic company. Transformation is ongoing there for 10 years. And Brazil, basically, since the acquisition from Kirin where we got some scale, that's where the big transformation started. Now we have a strong presence in what is the highest value beer market in the world. We do about 31% of volumes, 32% of net revenue and 27% of operating profit. You see no operating leverage. That comes because of the weight of Brazil where we still have below average operating margin share. Towards the year end, those numbers change because the seasonality in our region is so that November, December are the big months. We do 20 million hectoliters of Heineken. We are the largest region for Heineken. So we do not only compete with outside world, but also amongst my colleagues, regional presidents, we compete for #1 positions. We have 19 #1 and #2 positions across the markets. I would like to call out our partnership with CCU, which is Chile, Argentina, Colombia, Uruguay, Bolivia, where we have about 20% of the beer volume are our brands. But we sit in the passenger seat. We do not manage the business there. Now the shape of the region has dramatically changed over the years. You see on the bottom, back in 2000, we basically only had Heineken USA and some export in Latin America. In 2003, we signed a partnership with CCU, and we will be celebrating next year the 20th anniversary of that partnership. Now the big step change was in 2010 when we did the acquisition of FEMSA Cerveza. We acquired Mexico and Brazil, and that's why you see the big step-up in terms of size. The other big step-up in terms of size was in 2016 when we acquired Kirin. Those are the 2 bottles that you see, Devassa and Eisenbahn. In between are few milestones. In 2014, together with CCU, we partnered with Postobón and entered in Colombia. That's the Andina bottle that you see there. In 2015, we entered in Jamaica, acquired Red Stripe. In 2015 and '17, in 2 transactions, we acquired Lagunitas. Then in '18, minority stake in Belize. And then in '19 and '20, we entered in 2 monopoly markets of ABI: Ecuador and Peru. And that basically from 1% of share of beer, we went to 15% of share of beer over that period of year, which is a 14x in 20 years. Yet, we are a distant #2. The reality is that ABI makes about 90% of its profit in the region where we make about 30% of our profit. So there is a big difference. Now what do we want to do? We progressively want to capture more of that profit share in the Americas. And our priorities are very clear. We have to continue scale premium led by Heineken. Heineken is super important in my region, and by innovation. I have 3 more slides specifically on the #1 priority. On the #2 priority is continue to strengthen those challenger positions. Now I do want to be very clear here. We entered in markets like Peru, Ecuador, Colombia not to destroy value, because that's a question that I often have or receive. No, we entered there just because we think that we can take a reasonable share of that profit market because we entered there through Heineken. We're not going there with below main stream of economy brands. So that's a very important point. We do believe that in those underserved markets, Heineken -- led by the Heineken brand, we can take a fair share of those markets. Colombia, Peru, Ecuador used to be a EUR 2 billion profit pool. So we just think we have right to win there. Accelerate digitization of our route to consumer. That is across the Americas, and Mexico is leading there. We are, today, reaching about almost 90% of the fragmented trade we reach through our platform Heishop. And I will come back later on how that helped us in terms of the innovation of Heineken Silver. Improve profitability via local sourcing and returnable packaging strategy. That might sound very -- not very sexy, but it's extremely important. Returnable packaging, it has a GP profit of about 20 basis points higher than the average of the company. So that is low-hanging fruit. If we execute that well, we can dramatically improve our OP margin. Local sourcing, anecdotically, you know the growth that we have in Brazil. We have been sourcing this year out of 11 countries Heineken bottles to meet demand. In the coming years, more and more, everything will be sourced locally. Scale premium with Heineken. So the left-hand side on the slide shows you that in 2015, Heineken was about having 31% of the premium category was with us and about 21% was with the rest of the brewers. In '21, we own 40% of that premium and 29% is with the rest of the market. So basically, we captured 40% of the growth of the premium segment over the past years, and that happened with an expanding portfolio that has been increasing by 2.4x. Heineken clearly leading, but not only Heineken. You will see, Amstel Ultra in Mexico has been the engine of growth to gain share in the premium segment. Also Bohemia, that is Mexico. Dos Equis is not Mexico. That is Dos Equis in the United States; and then Eisenbahn and Lagunitas. So important for us to keep on going full throttle on the premiumization led with Heineken. Next to the premiumization, it is the 0.0 game. And we have disrupted the Americas. We were the first movers not in Mexico and Brazil. We were the first movers not in the U.S. But in all those 3 markets, we have today #1 positions in the 0.0 category, which is a highly profitable category. We have 40% share in nonalcoholic in Brazil, more than 20% in U.S. and 70% in Mexico. And Brazil, U.S. and Mexico are the #1, #2 and #3 markets within Heineken. And it's not only about Heineken 0.0. In Mexico, we will be launching Tecate 0.0 next year. In Lagunitas, we have the Hoppy Refresher. We have the IPNA. So we have much more to come to make sure that we keep that category alive and that we keep on leading in that category. Now you've heard a lot about Beyond Beer. I just have 2 simple visuals here. In Mexico, we are the market leader in Beyond Beer, and the center is cider. We own the cider category in Mexico, and it's growing double digit. We own what we call the Mezclas, which are basically flavored beers. For the ones that are not familiar with the Mexican Mezclas, Sol Clamato is basically beer with tomato juice, lime juice and all kind of spices. Highly recommended beverages. We are twice as big in flavored beer in Mexico than our competitor. And then in the U.S., we are very much experimenting there. So we are mainly with Dos Equis. But also next year -- I got a question yesterday of somebody who is a big fan of Red Stripe -- also with Red Stripe, we will be moving into Beyond Beer next year, but I was just highlighting here the U.S. And Dos Equis Lime & Salt is an innovation that has some legs. We're going towards 1 million cases. So that is one of those innovations that would go beyond the experimentation phase. And now we have a video. [Presentation]

Yes. Before going to the big 3, you saw a few brands that come from Haiti, Jamaica, [indiscernible]. With all those markets added up together also important for us. They can make a difference between a good year and a great year. And over the past years, those countries have been generating good profit growth as well. The U.S., now everybody is very familiar with U.S. It is EUR 103 billion retail sales value market, 234 [ million hectoliters ] beer market value with a steady growth since 2011. Declining more recently. We are the #4 in beer market position in the U.S. And I do have to mention that the U.S. has been for us a bit of a frustration because it took us some time to come back to growth. In 2020, let's say, the momentum that we started to have was stopped with COVID. We made a record-high profit in 2020. In '21, the momentum was there. We were gaining market share. All of the KPIs were green. And then on '22, hit the ocean freight prices with, as a consequence, increase in rates but also other [ stuff ]. So in '22, we lost that momentum. That's why I was saying that in '23, the big challenge is to bring back that momentum in the U.S. How are we going to do that? So we have 3 big priorities. You will not be surprised, Heineken is still the #1 pillar. Heineken original has a very solid base of consumers. Heineken 0.0, we will continue investing in that segment. And the big bet for next year is Heineken Silver. I have a separate slide on Heineken Silver going forward. Dos Equis is a top 10 brand on draft. In the U.S., it is the #2 draft handle of imported beer. And I mentioned earlier that Lime & Salt is one of those innovations that has some legs. We will expand that next year into Lime & Salt 0.0 to spike and to remain active in the 0.0 segment. Then Lagunitas, if you would ask me, "Marc, are you satisfied with the acquisition in Lagunitas?" I would tell you no. We bought Lagunitas in '15 and '17 at the height of the craft beer segment. Are we doing a disastrous job? No. We are somewhere in the middle. There have been acquisitions made for much more money and that have been sold for a tenth of their value. In the meantime, we are still hanging in there, and we are innovating in the 0.0 space with Hoppy Refresher, IPNA. So we're still confident that we can bring back IPA to growth. It is still the #3 IPA in U.S., #1 IPA on draft and we are the #2 in craft in 0.0. You all know Athletic Brewing, but we are trailing nicely behind Athletic Brewing with Hoppy Refresher and IPNA. Heineken Silver. The first point I would like to make is that U.S. is a highly sessionable beer market. And if you look at the penetration of premium in that segment, that is below par. So we do believe that there is space to play with a premium proposition, a [ re-sessionable ] proposition in low bitterness beer. So we have made -- we have learned from the mistakes that we made in the past when we launched Heineken Light where we didn't really make the product for the American consumer. We did that with Heineken Silver. That concept tested extremely well against the market leader. And I think, [ Trevor ], you told me yesterday, "Marc, I have known many proposals that tested very well and they do not necessarily are a guarantee for success," but we are extremely positive. You also need to know that the distribution system in the U.S., our distributors do not have today a brand to fight against the market leader. So we do expect our distributor networks also to embrace the Heineken Silver and to go after that segment where today they do not play. The Heineken brand power is high in U.S. It is not translated in market share, which we will also see there some opportunity. And we will put a lot of money behind Heineken Silver launch, $100 million. The U.S. has always struggled. Platforms like Champions League or Formula 1 were not very relevant in U.S. That changed big time with Netflix and Formula 1. So now we have 3 races, Miami, Austin and Las Vegas. And Las Vegas, Heineken Silver will be the title sponsor. So that is big. There will be also for the first time in many years, again, an American driver joining the Formula 1. So we expect a lot of buzz around Formula 1 in U.S. going forward, and that should help. So big bet and very important to regain that momentum. Mexico, EUR 20 billion beer market; retail sales value, 91 million [ hectoliters ] beer; market volume, a nice steady growth over the past 10 years; and we have a solid #2 market position. Like I said, this is a company that we have transformed since day 1. And I have to explain the left-hand side a little bit because it's a bit complicated. But it shows that the net revenue we have increased by 1.6x since we acquired the business. Operating profit, we have increased by 2.7x. So that, financially, has been a huge success. Now what I want to highlight on the top is the volume market share. We have been gaining market share since the acquisition steadily, nicely. And then we reached the point where we had to start dealing with the OXXO mixing. When we acquired the business, that came with a 10-year contract with OXXO. That has been helping us to gain penetration, but it was a very expensive contract. So we have decided to spread the mixing over a number of years rather than to take the hit in one year. So you need to be aware that OXXO was, back then, 25% of our volume. So mechanically, you would lose a lot of volume. Now the challenge for us was to offset that by accelerated growth in SIX and traditional off-trade. I have a separate slide I will come back on that. So the strategy to further accelerate in Mexico is clearly continue to build a winning portfolio led by Heineken, which today is not the case. It's led by other brands. I'll come back on that; continue to leverage our retail capabilities and further expand the SIX. We're the second largest retailer in Mexico after OXXO. Same as in Brazil, accelerate returnable glass and local sourcing. We have announced this year that we will build a canning factory in Mexico so that we are not depending from high import costs. So that's very important. All those local sourcing, at a certain moment, they just kick in, in your P&L. Expand the digital route to consumer. Ronald will come back on that more in detail, but that is definitely something where we are catching up. I would dare to say, almost at par with Ambev in Mexico and increased productivity that comes along. Now this gives you a bit of a view of the impact of OXXO mixing. OXXO mixing was, at the end of 2018, represented 25% of our volume. So that is a volume you open the door and the competitor gets [ fridges ]. So we spread that over time. At the end of Q3 of this year, the weight of OXXO was 17%; SIX, 19%. Traditional off-trade went up. So that is something hard to swallow and to digest. That puts a lot of pressure on the organization to compensate that. And in whole transparency, it's almost impossible to compensate that completely, and we lost some market share also because we have been leading price increases also in the market. But it also comes with a bright future. Because the OXXO contract was an expensive contract, it put a lot of limitations on us. We had restrictions on SIX expansions. They were entitled to have the best promotion across the country. So all of those issues will be gone. So I do believe that it's for a better future with a much more balanced channel setup than we have today. And the last wave of the mixing starts in January of '23. Now maybe not everybody is so familiar with that, but historically, Cuauhtémoc Moctezuma, now Heineken Mexico, in many parts of the country, you work with alcohol licenses. When there was no succession, often the brewery would take over the alcohol license and would put somebody to run the place. So back in 2015, we had 4 different brand names across the country. We decided in '16 to create one brand called SIX. So that took a few years to get that off the ground. So we have closed a few stores. That's why you see a dip in '15. And then basically, from '16, the brand name SIX was there and has been growing steadily. We add like 1,000 stores a year, hitting more than 16,000 stores by the end of this year. It is by far the most profitable channel within our network in Mexico. And you see the differences between -- if we can migrate sales from OXXO to SIX or traditional off-trade, that will definitely help the profitability going forward. You see GLUP. What is GLUP? It's a B2C. We do believe that we might have, I do say, we might have a right to win in B2C in Mexico by building that around the network of those 6,000 SIX -- 16,000 SIX. So today, we have, I think the latest number I got, 300,000 consumers that we service through GLUP. Every month, it's about 20,000 that get added. So it's off to a good start, but too early to say how that will land. Now when you think portfolio in Mexico, you first think about Tecate. Speaking about transformation, Tecate used to be a northern brand. Today, it is a nationwide brand. It [ sort of live ] behind Corona, the #2 brand in Mexico. The growth of Tecate has been hampered, of course, by the OXXO mixing because, of course, there was a lot of sales of Tecate in OXXO. But you see the growth there that we have delivered since 2010 on that brand. On the right-hand side, there is a big opportunity of further premiumization. Back in 2010, the premium segment was 1%. It's now 8%. And you see the contribution of the brands in Mexico. It is not Heineken. So Mexico is also a country where highly sessionable beers are important. So Heineken has some decent base, has very high brand equity, but it doesn't translate in market share because the consumer, after one beer, shifts to a more easily drinkable beer. So we see the other brands that took off, and I think I have to call out Amstel Ultra on the top. That is a super sessionable premium beer that has been growing the category over the past years; Sol, the Mezclas that I referred to earlier, also premium beers; and then Bohemia. So the big bottle on the right is Silver. We launched Silver this year 3 months ago in Mexico. So we do believe if we can copy the success that we had in Brazil in Mexico, we do believe that there is a lot of potential in the premium segment with finally having Heineken that will be a good fit for the Mexican palette. Now the importance of digitization of our sales, thanks to Heishop, after 30 days, we had Heineken Silver available in 100,000 stores in Mexico -- [ 50,000 ] stores. That is typically something that would take you much more time in the previous system where you would have the sales rep go and do the selling or the telesales. So that is the strength of Heishop. We're now today available in 150 stores. It will be a long story because we will have to explain what the Heineken Silver concept is to the Mexican. Huge sampling plan, similar to Heineken 0.0. We have learned a lot from Heineken 0.0 because a lot of people were very skeptical about the 0.0 beer. Before Heineken 0.0, I don't think that there was one 0.0 beer in the market that any of you would say, hey, that's a good beer. So that changed. That has been a success also by massive sampling. We do the same with Silver. Brazil, EUR 31 billion retail sales value, 154 million hectoliter. And I've put there on purpose the growth of the premium beer market volume rather than the total market. Why? Because that is -- well, we definitely have been driving that premiumization of the Brazilian beer market. The left-hand side shows you the kind of company we were back in 2010 where the upper dark side was Heineken and the light green was economy. We were basically 1 million hectoliter Heineken with an economy portfolio. Now in the end of 2016 when we acquired Kirin, we started massively to transform the company and shifted towards a premium company. And on the right, you see the weight now that we have with premium, mainstream and economy, and that trend keeps on continuing. So in terms of capacity, that is an important one. You have to think when you migrate, transform, it is about 2 liters of economy per 1 liter of premium in terms of capacity. So there is some capacity need to be capable to keep up with the growth of that premium. So what is our ambition going forward? Definitely, full throttle continuing what we do today with the Heineken brand; continue to reshape our route to consumer. We have done -- in '21, we did the big change of migrating to [ other ] market, from the Coca-Cola system to our system. So we took Heineken and Amstel back, and we gave them other brands. So we have a dual route to market, and that worked out very well. I have a slide in this afterwards. And then like I mentioned earlier, intentionally returnable packaging and local sourcing. And this is a bit what we are today with Heineken. We are the #1 brand in value in off-trade. And we are today, with 8% market share, the third largest brand in Brazil. SKOL became a below-mainstream brand. That's the largest brand, Brahma and then Heineken. So in value, if we keep on growing, we'll probably become the #2 brand in value at a price point of 180. And still, as a small #2 with about 23%, 24% market share, we set the drumbeat in terms of price increases. So I think that's a very important topic because I don't think there are many countries where you are #2 that you have that brand power that allows you to drive the pricing. It's not only about Heineken. It's also Amstel. Amstel, with the same story as Heineken, has high brand power, twice the market share. So we do believe that the growth of Amstel is there to continue. You might ask yourself, "Hey, Heineken, Amstel. What about a mainstream Brazilian brand?" Devassa is not up there. But Devassa, basically, until 2020 was keeping up with the same growth rate as Amstel, slowed down a little bit now because of the high price increases that we took. And then we are leader in value in craft. And we are leader in value with Baden Baden, Eisenbahn Styles, Lagunitas that we produce locally. And we have a license agreement with Molson Coors, and we produce locally, Blue Moon. And the craft segment in Brazil is a fast-growing segment with a lot of players in there. This is what I shared with you earlier. The massive change that we did in terms of the route to market shift where we took the -- when we acquired Kirin, Kirin had owned direct distribution and a bunch of resellers. We reduced the resellers to the most professional ones, and we have invested in our direct distribution. We took Amstel and Heineken to us. And we have given the Coca-Cola Bottlers Eisenbahn, and we launched Tiger. So I don't have a slide on Tiger. But if you would go back, Tiger launched in the Coca-Cola system, is, after 2 years, a bit on the level of the Amstel launch. So fingers crossed that we can repeat the success of Tiger with Amstel. Now how did that turn out? I mentioned earlier the importance of returnable packaging. So the reason why we wanted to have Heineken and Amstel in our own route to market is because we did want to go stronger in on-trade. On trade, returnable, premium is the most profitable combination. So that was, for us, super important. And you'll see the growth in terms of numerical distribution, Heineken plus 30%, Amstel plus 60%. On the right-hand side, the growth in returnable glass plus 8%, plus 12%. Eisenbahn, on the other hand, with the Coca-Cola system, also increased in numerical distribution. Now in the end, what did that deliver? The whole transformation in Brazil. We are today in rev per hectoliter, we used to be significantly below our competitor. We are today higher in rev per hectoliter, same for GP per hectoliter. And in terms of profitability, we are indeed going into the right direction. We still have a long way to go, but we do believe that with the future value drivers, continue to grow premium, have everything locally sourced. So some of the local sourcing starts to happen as from next year. But basically by the end of '25, beginning of '26, we will be completely locally sourcing. Continued penetration of RGB and then it's a scale business. So if we keep on having that growth, if we tick all those boxes, premiumization, local sourcing, RGB, on-trade and we have the scale, then I do believe that Brazil is set to meet the average OP margin of the region. So what do I want you to remember? That our footprint in the Americas has dramatically changed over the past years through inorganic business, but then inorganic business that we have well managed and that we have grown in the right direction, that we have premiumized, that we have a portfolio that goes beyond Heineken, and then that the Mexico and Brazil transformations are ongoing. And I think we have a lot of momentum. And then like I said, the regaining of momentum in the U.S., that will be, I believe, the biggest challenge. We have that silver bullet that yes, we -- James and myself and everybody in the team is pretty confident that we can make that happen. And I have 30 seconds to go and that was it for the Americas. Thank you.

Thank you very much. And since we just finished the Americas presentation, I couldn't avoid but commenting on the game from yesterday because the Mexicans are quite creative, and we're discussing a little bit the options that the Mexican team has, and there are actually quite a few available. They have window versus aisle, chicken or pasta on their flight back home. So on that note, we have our lunch now. So if you walk through the back and take the stairs down towards the [indiscernible], we will have our lunch break there. We will reconvene to start again on the dot, thank you very much for staying really on time, at 1:30 precisely. So thank you. [Break]

Good afternoon, everyone, and welcome back after lunch. I hope you had a very good lunch. And I also hope you had a very good morning. But talking to quite a few of you just now, I think it was good. It was high energy and a lot of content and insights. I'm going to share the story about becoming the best connected brewer and digitizing our route to consumer. And we very much realized that we have not spoken a lot about what we're doing in digitizing this route to consumer. But we haven't been sitting still. So I hope the one thing you take away at the end of the presentation is all the good work that has happened in all our markets and the global teams pulling that together. First, a bit about me. I started at Heineken in 1995. And actually, my first job was in supply chain. Then I moved into finance, was amongst other -- the Finance Director in the Netherlands, the Finance Director for Heineken U.K. I was the Director for on-premise and wholesale in the Netherlands, when we still had the integrated wholesale company in the Netherlands. And I was the Managing Director in Portugal and more recently, the Managing Director in Heineken U.S.A. And then 3 years ago, I came back to the Netherlands and started on this very exciting journey to see how we can accelerate the digitalization of our company. With one other small anecdote. 27 years ago, I wrote my thesis to graduate from university. And I used neural networks, AI to predict stocks. And I'm not lying on the beach, I'm selling beer today, so I was not very successful. So what am I talking about today? It's about how this complete transformation of our route to market. The way we deal with our fragmented trade customers, the small stores, the restaurants and the bars, how we boost the value of that for our customers and also for Heineken. Why it is important to move from off to online? Why -- even if we have 8 [ OpCos ] that are all slightly different, we think we can do that with 3 architypes. How we use data to create insights that help our customers to sell more and then have Heineken to generate more money. And last but not least, the enormous pockets of opportunity we see by digitizing this route to consumer. But before I do that, I would like to take one step back. We want to shape the future of beer and beyond to win the hearts of our consumers. But in a world that is digitizing, where consumers and customers go more and more and more online, we have to become this best connected brewer. Our consumers require different forms of engagement online. Our customers want an experience that is seamless if they talk to us on B2B or telesales or to sales reps. Even our own employees expect data in the fingertips. If we do not digitize our company, if we do not unlock the value of data, we will be not as relevant in the future as Heineken has been over the last 158 years. That is why we need to become the best connected brewer. And as Dolf already shared this morning, it means we need to do 2 things. We need to really digitally transform the front end, where we have our consumers and our customers, where 75% of the value lies, where we need to win, where we compete, where we want to outperform. But at the same time, after 158 years in an OpCo-centric model, we have created fragmented processes in harmonized data, a tech landscape that is highly fragmented. We can and need to simplify the back end to save cost, but to also increase our speed and drive scalability across the globe. And both we need to do at the same time, and both we will do at the same time. And when we go one level deeper, there are 5 big activities we do. On this front end -- so let's call it consumer and customer facing. One I'll talk about now, our digital route to consumer. Anything that has to do with digital marketing, first-party data, eB2B sales, revenue management analytics, lots of value capture on the outside of our business. Number two, data and analytics, unlocking the true value of machine learning and AI on large data sets. But at the same time, making sure that the data we have internally is harmonized, is clean, there's foundational work to do. Because today, we use 99% internally generated data, but very we quickly that becomes 99% external data, consumer data, first-party data, customer data. And then on the inside, to modernize, simplify 3 things. One is simplification automation. This is anything inside from HR, from procurement, from finance, from supply chain. How can we really simplify end-to-end all our processes and our technology landscape and really unlock true savings that will help to fund the journey to invest in brands and innovations and acquisitions and in D&T? Second, a secure and digital backbone. Secure for cybersecurity. In a world that becomes more and more connected, we have to make sure we keep ourselves secure. And this digital backbone is a complete, modernized technology architecture in Heineken. I will not talk a lot about it. But today, I think many of you know, Heineken still has about 45 different ERP systems. Unlike many other CPGs that already 10 years ago, consolidated and made it much more simple. So we're on this journey to do that. But last but not least, this is not about data. This is not about technology. This is about change. This is about transformation. This is about a different way of our sales rep working to take orders, a different way of operators in supply chain to work with digital tools, a different way of millions of our customers to interact with us. So enabling this organization to become more digital, building hubs with talents, data scientists, cybersecurity specialists, roles that we did not have 5 or 10 years ago in the company is really, really critical. So becoming the best connected brewer is an end-to-end holistic approach to make Heineken and its partners, consumers, customers and vendors really, really industry enabled. And all of that, we track every month for every market, we track the success and the progress of this transformation. And again, we try to do that holistically. You see the 5 top KPIs we track on the top. But in our digital route to consumer, we also track how many first-party data records we have. We track the revenue, the number of customers, D2C value. On data-driven insights, we aim to deliver value, operating profit with our analytics use cases, AI and machine learning. But we also track the scalability or the quality of our data, quality records. Number three, simplification automation. We enable with technology and data a lot of the savings in Heineken because almost every project we now do in Heineken has a WiFi connection or a long cable attached. Everything has a form of technology component. And we track things like savings, but also how many of our breweries have we connected to the cloud. Number four, on the digital backbone, how much standardization do we have? How much global platform do we have? What is the cost of running this whole machine? And number five, disenabled organization. What do our internal customers say, our Net Promoter Score? Do they like to work with those tools? But also how many trainings do we do? Year-to-date, we did 27,000 courses online to help train, build capability with all our people in Heineken. I will talk about one today. Magne, from supply chain, tomorrow will talk a lot about the fantastic work our supply chain has done in the last 3 to 4 years in the connected brewery, where now 17,000 of our operators work with online tools. And when I started 27 years ago, we had 1 computer on the packaging line with 5 shifts of 14 people per shift. And now we work with QR codes, with insights, with tools that make their life much easier. And Harold will briefly touch tomorrow on simplifying the landscape, building this new digital backbone. Digital route to consumer. Our strategy all starts with beliefs. So first, and I think most of you will agree, we absolutely believe that in this decade, virtually all orders will move from off to online. But if you believe that, there will be a few players, a few platforms that will collect a lot of orders of our customers. So we need to make sure we collect those orders on our platforms, on our online platforms because we don't want somebody else to collect billions of orders of small customers and start negotiating with it. It sounds defensive. But we also want to do that because it gives us all the insights in the customers we deal with, all the transactional data that can help grow those customers. Our second important belief is we do not believe there will be one app. Some people out there think there will be one killer app, consolidated everything. We do not believe that. We also don't believe there will be 80 platforms taking orders. There will be some form of consolidation and probably in between 3 to 5 apps that do the majority of orders for all those customers. So what does that mean? First and foremost, it means strong brands, brand power is absolutely pivotal because we want to be listed on all those platforms. And the strongest brands will be listed everywhere, and they will be bought because there is consumer pool. So we really need to start with strong brands, as James eloquently said this morning. Secondly, if there are only 3 to 5 apps, there will not be 1 app for beer and 1 for sodas and 1 for water and 1 for coffee and 1 of wine and 1 for spirit, and 1 for -- there will not be. They will become multi-category. So all of those apps will offer next to their own category, other categories to sell. And not just products, also services. That sounds easy, but it is super, super hard to do. The fulfillment part of that, making sure that all those different products, all those SKUs get in the right quality at the right time to the right location actually is super difficult. And that's where Heineken has 20 years' experience with our wholesale operations in Europe. Because basically, we are already a marketplace in Europe, knowing about multi-category and knowing about fulfillment. We are moving that from off to online. And last but not least, it's not just about protecting our business from moving from off to online, we really believe this unlocks tremendous pockets of value for our company across the globe. One, I will talk about it, more reach. Digital allows us to get to pockets and customers we've never been before. We can offer customer experience and customer intimacy at scale through digital solutions. Number two, when we have these relationships, when we have these customers order over our platforms, we can start delivering other products, other services. Sodas, wines, spirits, financial services, insurances, all kind of things that really help those customers through their entire life cycle to help them to do their business better. And last but not least, let's not shy away from that, this is also highly effective in Heineken. Our sales reps that take orders do not take orders anymore, they can become data-driven business consultants. They will do different things, and we can do that more efficiently. Secondly, the back office we have in our wholesales organization, we need significantly less people because all the data in the back end is highly integrated, and we know what's happening. So this is the why. Then when we talk about route to consumer, what do we actually talk about when we talk about route to consumer? It's basically how we get our beer from the brewery to the consumer. Sorry, James, that is not customer-centric, how the consumer buys their beer and their brands from us. So first line is modern trade. The channel where we have the Tescos, the Walmarts, the Carrefours, the Albert Heijn, big, big customers. It's roughly 40% of Heineken's business. And already 90% of this is digitized. We call EDI, electronic data interface. The order, the invoice, sometimes more information like that, logistics, when can I expect a truck, already globally, 90% digitized. When I will share numbers on Heineken, we do not count that. That's different from others. We do not count that. This is a consolidated channel with a lot of buying power at the grocery stores. If we want to have data and insights, we can buy it back from Walmart or from Nielsen. And it's a lot about the cost to serve optimization in that channel. What we will talk about today, what I will talk about in the next half hour to come is the fragmented trade, which is roughly, in total, 60% of our business. I show you a simplified picture, but the direct relations, so where we have a direct selling relation and most often a direct logistical relation to the outlet to small pop-and-mom stores, that can be little stores in Ho Chi Minh city, this can be a bar in Amsterdam around the corner, that's about 30% of the market. And we have digitized already about 45% of all revenue in the channel. I show you a simplified version in Europe where we have wholesale, basically that's also a direct market, so the brewery and the wholesale are directly going to fragmented trade, but I try to keep it simple. And then the more complex channel, which actually is huge, where we are really great at, it's about building relationships and partnerships, we call the indirect channel. And it is mainly in emerging markets where we see that a lot. So we sell to a distributor. Sometimes, they sell to subdistributors, and it ends up in small pop-and-mom stores and in bars and in the restaurants. Again, about 30% of our global revenue. And you can see the level of digitization is lower at 35%. This is hard. It's not easy. It's much easier. And I will share you in Mexico, a large market with a direct route to market where we digitized customers where we come every single day. Here, we need to onboard also distributors and subdistributors, so we can collect orders over here and give them back to them, to them and to us. It's much harder. And still today, we've already done 35%. So I told you why, the beliefs. I told you what we talk about. Now how do we look at our markets. I would love to have a very simple approach and say we do everywhere the same, but not all our OpCos are the same. It's also not true that all our 80 markets are different, [indiscernible], the on-trade or the on-premise. These are bars, restaurants, hotels. Most of our relationship is direct. They have similar needs. A need of a coffee corner in Milan is not very dissimilar from a coffee corner in Seville. And from a large nightlife outlet in Frankfurt is not very different from Manchester. So we really can see that as a homogenic entity. Number 2 is outside of Europe, direct markets. Those are more emerging, growing markets where we have a direct relationship with the point of sale, with the outlets. And number three, indirect markets, those are small pop-and-mom stores with the indirect channel that I just explained to you. 3 different archetypes, and I will talk to you about all 3 of them and give you examples in any of those markets. So first, let's go to Europe. One is beer is super relevant in the on-trade. I don't think I have to explain to you the biggest, most important category, still a lot of wet-led outlets where consumers go in to drink and beer and then have a bite. Secondly, we are the absolute market leader in Europe and certainly, out of home, and Soren will share more of that tomorrow in his presentation on Europe. I talked to you about the customer needs that are fairly similar, but also our wholesale company. And you might have thought for years wholesale is a drag, we see it as an asset. We have 20 years of deep experience to sell multi-categories, lots of SKUs, do the fulfillment, do the sales, understand the category, have credibility at our outlets to sell all those categories to bars and restaurants in the marketplace. And I'm going to start with where it could all go. This is the U.K. We basically have all our orders online. It says over 90%, but we are almost all 100% online. This is not talking anymore about e-revenues and normal revenues, it's all online. And it took 10 years together. 10 years ago, the first order was taken on 1 of our platforms. And anecdotally, that was not by somebody, a very digital savvy, mid-20s guy sitting and ordering, the first order was placed by a 70-year-old woman after 1 a.m. at night. I think it speaks for itself. So we really made progress getting there. We [ started -- we have already ordered ] on telesales, so we really moved forward. And our customers, our satisfaction score, our NPS, because we do this to deliver better services and better experience to our customers, our Net Promoter Score increased by 38 points going to online. But also, we have full visibility. We know precisely what's happening at what outlet, when, what their issues are, what their needs are, what the categories are. And at the same time, we have significantly reduced headcount because it is just more efficient to do that. Completely other example in Europe. Italy, 10 years U.K., this is 4 years. So we are accelerating, already 35% online year-to-date September. So do the math where we really are in the month. And this is not just beer. This is already multi-category because you know we have Partesa, the largest wholesale company in Italy. And we're not just selling beer. We're already selling and shipping multi-category online. So we show and prove that we can do that. Also, our customers say, "Online, I actually like the online world. I score your NPS higher than the off-line world because I see benefits in ease of doing with you and the information that I get." And the sales reps we have spent 30% less time on all kind of admin issues that they need to solve. Don't need to go every single time in a car and travel and sit in the traffic jam, but can really, if we measure the time, focus on the things that really matter to build and grow our customers. Europe, we are live in 13 markets. We went from 21% online revenue. So this is the proportion of our revenue, is the proportion of all the revenue we have in the stand-alone that's going online over our own platforms from 21% to 38% to 58%. Today, and there's not fantastic data on this in Europe, but we believe we are the largest eB2B platform in Europe. Bigger than the #2, which we believe to be [indiscernible]. 5 to 10x bigger than the #2 and #3 brewers we have in Europe. And if we add all the revenue together, we're in the top 15 of all e-commerce companies in Europe, which include Amazon, Zalando and others. And we're growing. We're more than doubling the revenue this year in this channel. So we continue to drive online sales. This 58% needs to go as close as possible to the 100%, which is our belief. We are growing multi-category, like we showed it in Italy. We are adding categories in all those markets where we can. And last but not least, and again, Soren will talk about productivity in Europe tomorrow, this unlocks also great opportunities in our sales organization across the out-of-home in Europe to do things more efficient and at the same time, more effective. Second archetype, direct markets. So I'll show you 2 examples, Mexico and Brazil. We have, in most cases, a direct sales relation and a direct logistic relationship with outlets. The outlets, certainly, in those markets, still have a relatively high drop size. I will make the difference when we go to other markets in APAC and in AMEEE that are slightly -- was slightly significantly smaller. And here, I don't have to explain that. There is intense competition, certainly, in those markets. This is Mexico. And I really believe Mexico is a lighthouse in Heineken. I also believe outside of Heineken, how you create an end-to-end digital ecosystem in the route to consumer. First of all, this is not New York or London or Amsterdam, this is Mexico. An emerging market still, if I may say, 85% in the first 9 months of all orders are online. That is significant in percentage. That's amazing if you do the math in how much euros that is we do of our own apps over [indiscernible]. Secondly, because we have so much data, we're now deploying what we call IDA. IDA is an AI engine that basically does product recommendation. It does churn analysis. So we see is the customer more prone to leave or to stay. We do sales route optimization, we do where do you go and what do you tell. And we tested that in 6 zones in Mexico because every product we launch, we first test, we prove the value and then we scale. So we tested in 6 zones in Mexico. It is now available in 90% of the market in Mexico. So 90% of our customers, 150,000 online use this, and it proves to have a 3% uplift in volume in the test group. Interesting because it also optimized the route of our sales force, it saves, at the same time, 30,000 tonnes of CO2. So it works on all the angles. Number 2 is shelf image recognition. So we have our customers, 40,000 of them in Mexico, making pictures, taking their phone, I left it over there, taking a picture of a fridge. Where with AI, we look at the fridge and say, what's in the fridge? And how should you optimize your planogram? So we need Tecate Light in the left-top corner. We want Indio in the right-top corner. We want Heineken 0 in the middle and a 12-pack of Dos Equis at the bottom. So it really increased the execution power of our organization, and it helps to replenish and make sure that our on-share availability is as high as possible. And our customers love it. They give us a very high rating on the App Store. So they really like how we interact with them. And that is super important that we do things better than anybody else in the marketplace. But now -- sorry, and I clicked incidentally, we're also moving, as Marc said, into GLUP. GLUP is our D2C company that we use the 60,000 stores. We have the 6 stores in Mexico. And basically, we built a rapid delivery company. So we guarantee the delivery in an hour. The average time is 29 minutes. A couple of months back -- well, actually, James and I were together in Mexico, looking at the marketplace and said, "I want to test these things, right, because the team always tells us that they are fantastic." And in this case, they are fantastic. I ordered 2 6-packs of Heineken 0 and a bag of crisps. In 6 minutes, it was delivered. And not only in 6 minutes, I got a simple can of Amstel Seltzer in the back. So this is not only about generating revenue, this is also helping us to drive new innovation like Marc was talking about. This gives us an enormous amount of first-party data that the commercial teams can use for innovations and for marketing optimization. Mexico, really end-to-end example of what we do. And I would fully agree with Marc, we're not [ open at par ]. I think we're really doing a great job in Mexico. Then Brazil, other large market. We are today at 40% online revenue, but a different story. We first fixed the physical route to market. The deal Marc talked about with KOF, taking Heineken, [ Amstel ] in-house and Eisenbahn and Tiger to the Coca-Cola network. We first did that. So basically, going from 0% to 40%, which is year-to-date. Again, think about what the last month numbers are, we basically did this in a year, 15 months. Real fast and again, in a huge market with huge revenue. Again, we have fairly happy customers. And not a few, we have 40,000 reviews. You can check that online. And also here, we see that our average basket, so it's not just about selling the same from off-line to online, we manage -- by the way, we do it to increase our average basket size to our customers. The thing we also do in Brazil is really using e-retail. So it's a fast-growing channel in Brazil, and we have almost doubled the fair share and market share on those e-retail customers than we have off-line. So we have a 25% share in the off-line business and almost 50% in the online business in the e-retail channel. So direct markets. We classify 7 of our markets as direct markets. We went from 1% to 60% in that archetype online. And we will continue, as I say, to go from on- to off-line to in the end, get to that 100%. Also there, we need to move to multi-category. But we do not have 20 years of experience in wholesaling in America, so we will do this careful. We will do this intentional. And we really will test and learn before we scale. And last but not least, completely new value pockets. The stuff you saw on AI, shelf image recognition for execution, the product recommendation, all these things are working over there. Last archetype. I need a bit of water, sorry for that. And these are our indirect markets. So these are markets that most of the time have rapid growth still in the beer category. So beer is really growing fast. There are big customers, but there is an enormous tale of very, very small customers. And a lot of them, we do not cover in our market because they're too small, and they were too expensive to go to. So we have an enormous opportunity with digital to reach to outlets that we've never been able to go before. Two examples. First, Nigeria. And Roland talked about the whole case that we did in Nigeria. We really got grip of the market by making sure that our sales reps, our telesales, our contact center, but also eB2B, all work together to get all the information of the customers. Today, it's an absolute number, 77% NPS we have now on that online platform, which is huge. We do something different in Nigeria. In Nigeria, the level of digitization of the market, of our consumers, of our customers is maybe not the same as everywhere in the world. So we start by doing what we call assisted orders. So our sales reps go to outlets and help them to order. It takes 5 to 8 visits normally in most markets we see to really create adoption. My team will not like it when I say it, but the technology and the app is easy. The adoption of the customer, the change we need to do with our own sales reps is the most important thing. And already, we massively increase the number of what they do themselves. So over time, in the next year, 1.5 years, you will see that all of this will absolutely be done by our own sales reps. One other interesting thing -- by the way, life in many markets in Heineken, I show it here, is loyalty apps. It is loyalty points for trade marketing activations, promotions, new innovations, for reordering that we do. And the customers that use that on average, they have a higher basket size because we can drive trade activation programs, new innovations and have them order that. And here, what I said in those markets, it's really important to increase our coverage to go to point of sales, to go to outlets where we never were able to go before because it wasn't affordable. And the same is pretty much the case in Vietnam. In Vietnam, we're now year-to-date September, half our online revenue -- sorry, half our revenue in the fragmented trade is taken off our own platform in Vietnam called [indiscernible]. And again, recently, I was in Vietnam, and you go to outlets, and they show you the phone and they have 7 apps on their phone. 7 apps today where they order from. So it is really critical for us to when we have this adoption curve, we go to an outlet, spend 5 to 8 visits to get on our platform to keep them. 90 -- sorry, 89% retention rate. That is enormous. Super important, shows the loyalty, shows the appreciation for what we are able to do. And again, a super high Net Promoter Score, what our customers say about our apps. The third one is the graph that Jacco showed. So Jacco showed -- if you remember correctly, we only cover around a little bit less than half the market directly, and our brands are available in 55% of the market. 45%, we're not available. We're super south and the east of Vietnam, but much weaker in the north. And what this really helps is to start increasing penetration in more rural areas and in the North. And we've already done so. We increased the total coverage from 20% to 25% to 35%, and we believe there's more. By the way, we do not believe we will get to 100% distribution because at a certain moment, the cost of the last point of sale will be very expensive. So we'll test how far we go. And actually, we are working with partners, other platforms like [indiscernible] in Vietnam to really help sell products also on their platforms. And again, having strong brands is really important because they want our brands. They want Heineken and they want Tiger. So indirect markets, 50 market live, already over half the revenue is online. And we continue to drive expansion. We continue here actually to really drive a focus on coverage expansion at the lowest possible cost. Three archetypes. In all fairness, the vast majority of this, we build locally with our local teams. We built really good local solutions. We onboarded locally. And about a year ago, we said we need to do this much more intentionally. We have now built a central team that is now around 600 people on top of the people that work in the marketplace that really drive this globally. First, it's about the transformation, the changes, the adoption at customer level, at retail level, distributor level and for our own salespeople. So really important to do that. Secondly, we start to really scale the back end, the technology, the data, the insights. I talked to you about the AI engine in Mexico that starts in 6 regions in Mexico to test. We are now at 90% of Mexico. And the next markets are ready to go in Latin America and in Europe. The same is -- I showed MyJara, the loyalty program in Nigeria. We tested in Nigeria, and we can now copy-paste to other markets. So it's really important that we start coordinating the journey to help accelerate, to build the capability, to get technology, to get insights, to do faster, cheaper, better overall. And that ends, I think I'm going to be early on time, with where we want to go. We -- on the left-hand side, we have made, I think, tremendous progress. In the first 9 months of the year, EUR 6 billion of GMV. We have communicated to all of you, I think it's been 1.5 years ago, a number of EUR 10 billion revenue on e-business. And that number was actually a kind of an internal metric we have. We called it BTV, e-business transaction value. So we are going to move to the more generally accepted outside acronym GMV, which also all the other e-commerce companies follow. And that is the new target for us. The new ambition I have to say for us is going to be EUR 15 billion. Some of the EUR 15 billion, from EUR 10 million to EUR 15 million, about half is a definition change. The other half is really because we believe we're going faster. We have more confidence that we'll get to that number because we want to be the leading player in the digital route to consumer. We really believe this is a complete transformation of our route-to-market in fragmented trade. This will unlock value products. It's not just an on- to off-line. It's not only defensive, making sure that nobody else consolidate all the orders, there's a massive opportunity in product recommendation, category optimization, stickiness of consumer, loyalties of consumer, as I hopefully have shown. This is an opportunity to get to more coverage, more market share, more categories, more services outside of products. This will give us enormous amount of data that we can mine and use for internal use, for innovations, for how do we go with trade promotions to our customers, but also really to help our outlets. If you're Albert Heijn or Carrefour, you have thousands of stores, you can optimize your category. If you're an Italian restaurant here in Amsterdam, you have only our Italian restaurant. We can help them to say there are 600 other Italian restaurants in North Holland. So we can help you to say, you should stock more at [indiscernible], and we can even tell them actually fettuccini with ink squid will really help you to increase your turnover. It's not a joke. It's happening. So what we do is we focus first and foremost on customer satisfaction. On every slide, you've seen NPS scores. On some slides, you've seen our app scores. It is really important that we bring our customer base on board because in the end, that's where it starts. It starts with that level of customer centricity. Secondly, we need to fund this journey, so we are becoming, every single day, more efficient and more effective to drive productivity in our sales and back office organization. So to summarize, the world is moving from off to online. In fragmented trade, a little bit more than 40% of all our revenue is already online. In modern trade, 90% is online, and we do not add that to the EUR 15 billion of GMV that I just shared with you. Secondly, we have 3 architypes. In Europe, I believe we have an absolute right to win. We have strong brands. We have high market share. The relevance of beer is really important, and we have 20 years of experience in selling the marketplace, selling multi-category in our wholesale operations. In our indirect markets, we have fantastic relationships and partnerships with all those distributors and subdistributors. We also work with others. We have a track record of having good partnerships during the years. The long-standing one, APB that was on the list, I think, case-in-point, so we really can do that. In direct markets, we talked about Mexico and Brazil. I hope you agree with me. We may not have talked enough about it, but we really made a step up where in Mexico, we're absolutely there and I have. And in Brazil, we first solved the route to market physically. It does not make any sense to digitize a route to market where you still want to make physical changes. We've done so, and we're over 40% in online sales. Then data and insights. This creates a tremendous amount of data at consumer, customer, shopper, distributor level that we mine, that we use. Churn rates, product recommendation, loyalty program, self-image recognition. These things are now traveling across the world. And last but not least, the new value pockets. We have an ability to grow and go where we've never been able to go before, to increase our coverage and in markets where we never had multicategory to offer multicategory, to offer services where we've never been in the business and to really create value for our customers and for Heineken. So our route to consumer and digitizing our route to consumer will boost the value and the relationship we have for our consumers and customers and absolutely also for Heineken. Thank you very much.

Hello. Good afternoon. Let's see, introductions. I'm Yolanda Talamo. I'm the Head of the people organization, and I am the last presentation today before we move to Q&A. I've been in Heineken for 6 years, and I started being the Head of the people function in the Americas region. But before that, I had a very long career in Procter & Gamble, where I had several roles, most of them in the people function across local, global and regional responsibilities. I later on moved SAB Miller, where I worked for about 5 years and then more recently, last 6 years in Heineken. I am Venezuelan. Born and raised in Caracas, and I'm a psychologist. Somebody asked me if I'm a psychologist at the ET, the reality is that I'm not. I am going to cover today our sixth pillar our strategic priorities, which is about unlocking the full potential of our people and the organization. And to do this, I will speak about 4 themes that I will then bring down into a bit of details. So the first topic will be share with you the evolution and how we have moved our organization from entrepreneurial culture and operating model from where we were back in 2020 to be able to actually meet the needs and the requirements of the business, our key customers, consumers, but also the organization; how we have evolved our talent management practices and our capability building to be strategic levers of our EverGreen transformation. We will also talk about how we have stepped up our performance management process to make it much more tied to a disciplined culture of performance. And lastly, I will talk about how we have moved the EverGreen transformation from strategy into action, bringing it to life at a global level across all the markets where we operate. So as I said, we are -- I represent people function, last of our priorities. And I will talk about 4 topics today. The first one is operating model. I will then move to people. From there, to performance management. And lastly, I will talk about EverGreen transformation and how I brought that to life -- how we have brought it to life. In the center, you will see our culture, which was really the glue that brings all the pieces together, and I will also talk about that. So moving into operating model. One of the great strengths of our business is our people. And I don't know if you have heard about the expression that we have green blood that pumps through our green hearts, that is Heineken pretty much. And when we talk about the magic of Heineken, what we refer to is to our people and the culture we have built in the last 158 years. So when we are thinking about what we need to succeed in bringing our EverGreen transformation to life, one of the most important things that we have done is to really look to understand what are the things that have built this great company and what are the things that we want to preserve. So we want to make sure, and this is what we've done, that we recognize what are those great things that we have done in the past, but then also recognize what are the things that we may need to change, adapt and evolve as we do this. Dolf talked this morning about the seasons that we have been through and some of the challenges and disruption that we have faced and that we may face in the future. Our intent is to build a future-fit organization that can deal with these challenges as we evolve and as we leverage from the strengths that we have. So we have recognized, and what you can see in the slide, 4 important shifts that we will -- that we believe that are critical to really bring EverGreen to life and we will actually meet by unlocking the full potential of the people in the organization. The first of those shift is, as Dolf is explaining in the morning, move to a much more networked business. So moving from siloed OpCos that were much more disconnected and not working jointly into a network approach, where we see high connectivity and everyone really working, connected and sharing. We want to move to a disciplined entrepreneurship, and I will talk a bit more about that. We also want to move from siloed capability building to a much more strategic capability approach, one that makes sense and really meets the needs of the business. And we have also moved from selective talent management to broad-based talent management. I will talk about all these shifts in a minute. So moving still along with an operating model and just to make this a bit more specific. So the way we were operating several OpCos around the world, not really speaking to each other in the way that we want it to. There were some communication going on, but we were truly missing the benefits of working in the network. And the benefits of working in the network is really driving much more scale. It's really seeing much more share, learning, reapplying benchmark at a consistent and much faster pace. We were not seeing that. Now we try to see that more and more. Also, driving disciplined entrepreneurship. So moving from that culture of entrepreneurship that was part of the Heineken of more siloed approach and to coming together to also see much more scale, but at the same time, recognizing as Dolf was saying this morning, that there will be places and systems and processes in the back office where we will need to do since smart harmonization and to bring much more standardization as we recognize. And in those cases, as we also said this morning, we won't ask a lot of questions. We would just do it. So one of the things that we are convinced that we want to preserve is also that local strength and the magic that happens in our OpCos by the closeness that it brands to key customers and consumers. So what I tried to tell you is what is the balance of keeping those trends that have been part of Heineken in the last years, but how we want to evolve our operating model to be one that is much more connected, and as a consequence, drive much more benefit. As I move along and talk about people, the first element in our -- in the 4 points that I want to discuss today. One of the elements that we are very, very proud of is our levels of engagement. We consider that we have, right now, outstanding employee engagement. So we have several touch points with the organization throughout the year. We do this through poll surveys, but we also do this by our annual climate survey. These are the results of our 2022 engagement survey. And what you can see here, we are filled with pride because what we see is that we have growth on each one of these elements, not just when we compare to 2021, but also when we compare with the high-performing norm. And this is composed by the top quartile companies on which we compare to across industries, across the world over a base of about 17 million employees from different companies in the world. So when you see measures like a high proud to work for Heineken at 91%, when we see employee engagement at 86%, or even performance enablement and at high 82%, it's quite remarkable. And why this is so important? If you think about performance engagement, what that really talks about is that level of emotional connection that the Heineken employee feels with the company; it's levels of satisfaction is how much they would recommend the company to someone else; it's their intent to stay. This is what the employees are telling us. But when you think about performance enablement and it becomes very, very important when we talk about the EverGreen transformation, it's really about space and empowerment to make decisions. This is what we're told. It's about having the right conditions, the tools, the information, the data to work. It's about having the right levels of training. So this is what our employees are telling us. When you think about direction and alignment, how much do I understand the objective setting, how much does my work connect to the broader vision of the company. So we are extremely proud of these results. Of course, we're [indiscernible]. We will make sure that we keep them or continue to grow. But at the same time, very, very important, we celebrate the roles of our leaders around the world in driving these results. It's not something that the ET does. It's something that our leaders around the world are actually promoting by the work, and this is the group that enables all the great work that you saw shared by the regional presidents earlier today. Now one of the important priorities that we have set for ourselves within the space of people is making a choice on diversity, equity and inclusion. And we have set ourselves an ambition of reaching 40% of women in senior manager positions by 2030. And what you will see in the graph on the left side is that we have been progressing. We started at a very -- I would have to say, not in a great place. If I look to this data 10 years ago, we were about 10%, 11% of women in senior manager roles. What we have seen over the last 10 years, 11 years, is that we have grown, first, at a bit of a slower pace, but we have accelerated growth now much more because we have done very specific interventions. We want to make sure that we reach 30% by 2025, and that gets to that point of 40% by 2030. So a few of the initiatives that we have done that I find important to mention, and I'm only calling out female at senior manager level, but we're also making some important calls when it comes to cultural diversity, also making sure that we have the right representation of what we call regional nationalities and our management teams around the world. We're also making sure that we drive the right level of effort on making sure we can provide an inclusive environment for people to work in. A culture of belonging where everybody can be themselves when they come to Heineken to work. So big efforts there. In the space of women more particularly, we have done a few interventions. We look at the full space of -- since we recruit our people and how we are making sure that we have fair and representative -- a representation of women in the slates of candidates that we interview, for instance. But then we looked around all the way of the steps of someone in the organization, how they [indiscernible] Heineken, how they are onboarded, how they grow, how they are promoted, how are they developed. And we're doing some very specific interventions in middle management where we see there are women, and you can see it there in the pyramid, very transparently sharing our pyramid, and still some work that we have to do in the lower levels. We are doing some very specific support and development actions and ensuring that our women have the tools that they need, training that they need, to be able to grow and to see some additional career progression in the company. We have just recently launched a program that is called Women Interactive Network, where we are covering 100 women per year at mid-level career to make sure that we also level the playing field for our women in the company so we can see much more growth. So this has become a very important area for us where we see actually a lot of work going on at a global level. And just to share a very specific example, and this is Women in Sales in Cambodia. Cambodia had a very low start. They had 12% of women in the sales function. As I was telling you before in the lower base of the pyramid is where we have the majority of employees in sales, distribution and supply chain. And here's where we struggle the most, to have an acceptable number of women in these functions. So Cambodia is one of these examples. They started at a low 12%. And only in 2 years, they've been able to bring that number up to 20%. Let me show you a video where our Cambodian organization is sharing what they have done. [Presentation]

So a great example from Cambodia, and I have to say that it was difficult to choose. There are a lot of examples in our OpCos of our organizations bringing to life very, very nice examples of how women are being given right there and more equitable opportunities across our company. And we still -- as you saw in the last graph, we have room to grow. We are at a 27% now in October of 2022, and we want to make sure we reach that 30%, and later on, that 40%. If I move along, another very important intervention that we have set in the people space is to make sure that we identify a systemic way to really identify but also develop our future leaders. And it's not that we were not doing a good job before. But one of the things we did is that we looked at the entire employee life cycle and all the moments that matter within an employee's career. And we realized that there were some things to be done and to be improved and evolved in that specific base. So starting specifically, so when we plan what are our talent needs align to business challenges and priorities. So workforce planning and different specific interventions, a lot being done there. And then when you think about assessing, acquiring, making sure that we engage and develop our employees. So there is specific interventions along each one of those moments that matter, ending with measurement. And not just measurement of the quality of our process, which we also do to make sure that we keep ourselves tight and always improving, but also making sure that we measure our own employees on performance and on potential so we can make sure that we support them in the right way. And at the same time, we are driving this culture of performance. In the same space of driving a more systematic way to identify and develop our talent, we have done 3 very important things that are -- that have actually been critical to move the needle in the right direction. The first one is that we have developed a new potential model. It's our new Heineken potential model. We used to use a model that was off the shelf, and it was great. It worked for many, many years. But given we are in the midst of EverGreen transformation, we decided to create our own model. And it's really -- we're just in the process of launching it, so it's still not 100% out there, but this will give us the certainty that when we are assessing our employees, but also planning their development, we will do it in a much more accurate and effective way. The other thing we have done is to create global assessment centers. And this has been, actually, I would say, an evolution of how we did it. We have many good practices in the regions, but every region was doing a bit of a different thing. So we brought all the best practices together to create 1 global harmonized approach to assessment centers. We also developed very specific profiles by function and for general managers. And we have 1 definition of talent at a global level now and we take our top talent through these assessment centers, which help us plan much better their careers going forward. And then lastly, when it comes about development of leaders, we have segmented the organization in Heineken by levels and by audiences. And by doing this, it has allowed us to really identify what are the different needs that these audiences have in the different moments of their careers. And by that, we have tailor-made design-specific development interventions at all levels for a leadership development. We have already picked up a few. As I said, the WIN programs for our women. We also kicked off one that we call, Accelerate, that is a regional intervention for top talents. We also launched a program or relaunched a program that we stopped during COVID and now we completely revamped called [indiscernible], which we do with the IMD institution in Switzerland, also tailored to 80 leaders per year across the globe, and they come together and meet there to really focus on what are the key things that we want to make sure we drive their development. And not to forget at the bottom of the pyramid, very specific training and revamping of everything we can pull from LinkedIn and at the same time, really connected to our Heineken behaviors, which become extremely important, specifically tied to performance management. The other space, and you saw that on the shift that we have done, is to do much more consistency and intentional scaled approach to capabilities. Capability building is another area where we were doing a bit in a siloed way. We were doing it around the world in different moments, in different ways, different approaches and frameworks. So we identified one way to do it. We created a global framework, and you will see it in the bottom of the slide, specifically a strategic capability playbook, which has been deployed around the world, tied to very specific priority capabilities that we have also defined that are critical and needed to be able to deliver our EverGreen strategy. You will see them here: the first one being cost consciousness; the second about revenue margin growth; talent management is our number 3rd capability; transformation and change and decarbonization of the business. So we will focus on these capabilities following a global framework, one consistent approach to make sure that we reach much more people in a consistent way, and we can embed new knowledge and skills in a more -- in a faster and more effective way. So moving to topic #3, performance. And we talked about stepping up our performance culture. What have we done here? There's a few things that I find important. The first portion has to do with alignment. So we have clarity on our strategic priorities. We have also clarity about the Green Diamond of what we want to measure. And that's the starting point. So when we think about performance management, we set objectives. The what objectives are tied to EverGreen. You can tie them back, not just to our key strategic priorities, but the way we measure them through the diamond. We have also made sure that we tie along that process, strengthening annual plan, strategic plan with our key financial cycle, tracking through our EverGreen dashboard on a monthly and a quarterly basis to drive discipline and we do this at a global level. And then we have also stepped up in differentiation. We find it extremely important that we can measure our employees tied to specific performance objectives, and we can drive those differences and understanding who are the top talents. I have included here 2 metrics that show how we are progressing on performance culture. 86% of our employees believe that the managers clearly communicate performance expectations. It's a very high metric. So the understanding of expectations is there. And 82% of the people feel that they are held accountable for their performance. Both metrics increased versus last year, you can see there in 3 points. So this gives us the sense that we are definitely progressing in the right direction, and we see that the alignment that we want to see in performance management tied to our key priorities is there. But we don't want to stop there. Alignment is very important, but we also want to ramp up intentionality. And what do we mean by that? On one hand, there's 3 things that we want to do. The first is enhanced accountability. Accountability -- clarity of accountability is all about objective setting. If our people understand clearly what they are expected to deliver through clarity of objective setting, we will see that the results just flow from them. So as I was saying, we set objectives specifically tied to our EverGreen priorities, and they are connected to the Diamond and tracked through our dashboard, but we also connect them to our Heineken behaviors, which we consider critical to create and sustain our culture. The second element we have done is focusing on differentiation as I was saying. It is very important for us that we are able to distinguish who are our top talents, and we want to make sure that we leverage our performance management approach to do that. And the third, but not least, is development culture. This is one thing where we want to go back to, we want to make sure that every individual who works in Heineken has a development plan. They know what they need to work on to be much more effective, and they know what is ahead of them in terms of career development. That will also inform the need for leadership development, what I was talking before. So everything starts to be much more connected than it was in the past. Now performance management has to be integrated to remuneration. So we have to make sure both our short-term incentive and our long-term incentives are aligned to the delivery of EverGreen, our ambition for superior and balanced growth. We have also added a change. We have made a change to our long-term incentive approach, and this is adding ESG targets. So starting next year, and this has been approved by the AGM this year, we will measure 3 ESG targets. We will measure carbon reduction in production. We will measure water efficiency, and we will measure our progress versus female representation in senior management level. So those specific ambitions that I shared on female, you saw them there. And Stacey will share tomorrow a bit more details about carbon reduction and water efficiency. The other important piece is that we have, as part of our performance management, individual objectives. We have also aligned, for our senior manager community, 2 important objectives, and we have made sure that everybody reports on those objectives. The first one is gross cost savings and the second is gross profit margin. So these are 2 additional objectives that we have set for the senior manager community, and we see results already tied so that it drives much more consistency. So moving to the last portion. When you think about each 1 of the 3, we talked about people, we talked about operating model, we talked about interventions on people. We talked about performance management, and the last piece is EverGreen transformation. And it's impossible to think about setting up a new global strategy without really ensuring that we are able to land high-level strategic choices into the organization in a way that they really drive alignment, that they're understood and the way [indiscernible] people can reflect them in their objectives. And this is what EverGreen transformation in bringing it to life has meant for us. So within a few things in this space, and there's also some key metrics that you see on the slide that I want to mention. So we have created a transformation function. I have another slide that would explain that a bit in more detail, which is really about boosting EverGreen and the delivery of their results, specifically through capability building. We have also created much more discipline in how we prioritize the work we do. And for that, we have come up with top 25 global priorities that are also orchestrated and synchronized in a way where we can make sure we're leveraging the right level of resources. And we also have created, as I said, clear alignment and a clear line of sight between individual objectives, OpCo objectives, to the broader ambition of the company. A few metrics here that, I have to say, are quite good and strong. 99% of the top leaders in the company recognize and understand how EverGreen translates into their objectives. If you think about the general colleagues across the organization at a global level, 84% of them also understand the same thing, how their work is tied to EverGreen. So you see lots of alignment, which is the starting point to drive performance. And then 82% of our employees understand key elements of direction setting, which has to do with our dream and our purpose, but they also recognize and understand how it comes together with our values and our behaviors. So these are very strong metrics and we see all of them growing versus last year. We have also established new ways of working, 2 new things that we have created. I mentioned the transform a function or what we call the transform network. It is really a network of employees who come together to operationalize EverGreen and bring it to life in the regions, and then as a consequence, in the OpCos. And the bigger focus of this organization is to really work on bringing those capabilities to life in the harmonious way that I was sharing before. But they're also charged up with the responsibility of driving much more share in learning and reapplying across the OpCos. So 2 very important things, plus what you can read in the slide, which is all about orchestrating top priorities around -- across the company and making sure that we work less, driven by silos and a much more network organization. The other way of working is the creation of a party that we call Program Board. And the Program Board is extremely important because it's the one that will help us recognize the value out of the initiatives that we have agreed that will make it to the top 25. So it's about tracking the business case. It is about ensuring that the value that we have committed on each one of those initiatives is there, it's pooled, it's tracked. We also make sure that resource allocation is done in the right way. We look at interdependencies across the projects at a global level, just to make sure that all those things, beyond having a set of priority, that need to happen so we can see the projects moving forward are actually taking place. And last but not least, when you think about employee mobilization, we can create an amazing strategy. We can have a great plan in all these interventions. But if we are not able to mobilize the organization to create that engagement, to create that, I would say, motivation and pool from the organization, we would not have done our job well. So the last piece of how everything connects in the right way, after driving the right level of alignment, after making sure that people feel connected and understand how their work is tied to EverGreen, is really to create a rhythm of communication and, let's say, touch points with what we're trying to do. And we do that in many ways. And I just mentioned a few here on the slide. We have an organization that we call the top 150. It's made out of the top leaders of the organization. We call it the Forum. With that group, we meet virtually 6 times per year, and we need one face to face. These are moments to align, to check how we're doing and tracking versus our EverGreen dashboard's financial objectives, and we also use it to recognize and celebrate the great work the organization is doing. We also do 6 virtual global town halls. So the ET with Dolf, we come together 6 times a year to also do the same thing with the global organization. And this drives a lot of engagement, and people at the end have the opportunity to actually ask real questions live, which we answer in the moment. At the same time, the OpCos drive their own specific moments of engagement. They create town halls, they create their moment. So there's a lot going on at the same time. And last but not least, we have also created a way to ensure there's much more alignment. So having just what we call functional and OpCo 1 pagers. These are strategic 1 pagers that we follow, exactly the same consistent format to make sure that we can all understand. They drive the right level of priority. And this is another way that when we communicate through using the same and consistent approach, you can see that the understanding and the consistency really drives much more embedment of what we try to do across the different levels in the organization. So last but not least, evolving the magic of Heineken. I started my presentation saying that when we refer to the magic of Heineken, we are talking about our people and the great culture that we have built together. This is who we are. When we talk about the magic of Heineken, it's really the description of the type of organization that we are and what the people in Heineken come together to deliver, how we work, what we do, how we make decisions. So I have called out a few things here. I will say that this list is not restrictive to how we describe our culture, but it does include a few things that I find extremely important. It's really a no-nonsense, deliver-the-goods type of focus. You speak to anyone in Heineken and it's really about let's make sure we deliver. If we made a commitment, we want to make sure that we deliver in the best way we can. The culture is transparent. There's respect. There's trust among people. We're bold and courageous, and we also try to be creative. As you saw, outstanding employee engagement that when you are leading a transformation, the size of the EverGreen transformation, you want to make sure that your employee engagement is strong, and we have seen that it is for us. Speed, agility and external focus. Horizontal learning across the network, I talked about that as well. And stronger and more diverse pipeline supported by rigorous performance management. This is Heineken, and this is who we are. Lastly, just my last slide, going back to what I -- at the beginning committed that I would deliver. It's really about shifting a disciplined entrepreneurship and making sure that we have a future-ready organization to do that. Good afternoon.

Well, thank you very much to all our presenters of today. I would actually ask them if they can now join us. We're going to start our Q&A session. just give us a minute while we set up here some shares on tables for them. Probably a couple of words before we start. We do have some people that are going to be walking around with microphones. [Operator Instructions] I will be basically asking who could ask the next question. Please keep your questions to 1, maybe 2, but that's it, so that more people can of course ask questions. We do have the capability to take questions also from the audience that is watching us online. [Operator Instructions] We have people monitoring online, and we will voice over that question if we need to do that. So we will time for around 45 minutes for that. Please join us here. And yes, so do we have the microphones ready? Okay. So we do have quite some hands raised. I just don't see any microphones yet to help us to see who could -- there we are.

Jean-Olivier Nicolai, Goldman Sachs. I got -- I will stick to 2 questions then. Just for the U.S., first of all, you mentioned Silver in the presentation. A long time ago, Heineken management was quite excited about the launch of Heineken Light. Now did you learn from the difficulties you faced with Heineken Light? And why do you think it's not going to apply to Silver? That's the first question. And then just on Nigeria, you showed us a really good chart on the profit pool in Nigeria. Do you think we've reached a trough there? And different players are going to be more, let's say, focused on the profit pool going forward?

I can take the Heineken Light one, which was in 2005, which was a very promising launch, 0.5 million hectoliter in year 1, and it went rapidly down the drain because we had not listened to the consumer and we had made a Heineken Light beer that was not an American light. It was made listening to the brewers of Heineken, so too hoppy and not fitting the palate of the American consumer. What we did now with Heineken Silver was really making a high consider for the Northern American consumer. So that's a huge difference. And that concept was tested against reference in the market and outperformed the reference in the market.

First, I would like to repeat that Nigeria is still a huge potential for the future, 220 million people in GDP growth. Short term, when you see the reason of the decline was 2 reasons, the economic situation and fierce competition. Economic situation, when you know the nature of the economy in Nigeria, we don't believe that short term, you will have a huge improvement. The second thing is the competition. It's very clear that you receive -- we received signals from the competitors that for the last year, in the past year, they've been following a profit increase. Conclusion, a little bit less fierce competition.

Simon?

Simon Hales from Citi. I'll try 2 as well then, please. Obviously, we've talked a lot about the superior top line growth this morning. We've seen it historically. You've articulated how you expect to continue to show it across all your regions. You flagged in the statement last night that, that would be more of a balance between volume and price and mix. We've talked a lot about premiumization specifically this morning, it feels to me. Is premiumization going to become a bigger part of those midterm objectives to sustain that superior growth? Or I'm just misreading the amount of time we spent on those premiumization trends this morning? So that was the first one. Secondly, just coming back to Silver very briefly. How do I think about the sort of price reference of the brand around the world? Is it always priced at the same point? Is that price reference relative to the Heineken main brand? Or is it -- does it vary market to market? And where will it price in the U.S., if you can talk about that without being competitively sensitive at this stage?

Shall I have a credit premiumization to start with? It's a great question, and we did talk about it a lot. And the reason for that is because that's where a lot of the action in the market is. And that's where you see a lot of the growth pockets. I'd like to refer back to that chart, which showed the absolute volume growth or the growth pockets in developed markets are bigger than the combined growth in emerging markets, which on its own is also very good. And also a lot of the pockets of growth in emerging markets, we looked at South Africa, is in premium. So is it premiumization for its own sake? A little bit, but it's also where the action is, and that will allow us to add value to our mix. It allows us to grow at higher gross profit per hectoliter and get that virtuous investment circle going even faster as well. So it is deliberate. It's deliberate because of its growth and its profitability. So it's actually an example of superior balance growth in its own right.

The pricing you want to comment on that, Marc? Can we already comment on that or not?

I won't comment on the U.S., but I can comment on Mexico. In Mexico, it's launched at price parity with Heineken original.

Which is the same thing in APAC.

Yes.

Great. So it's Tristan Van Strien from Redburn Partners. Two questions for me as well then. Just first, Ronald, you didn't cover it, but just the back end of your transformation. I was a bit surprised to hear there's still a lot of work to be done because I recall in '18 and '19, a lot of discussions about BASE, replacing [ JDF ] words, SAP S/4HANA. So I guess it hasn't all happened. So what needs to be done? And what are the risks as you go through this transformation because there are always risks in these things? And then second, it sounds like we all have to ask about Silver. I'm a little bit also -- you're launching Heineken Silver in India, a very high alcohol ABV market. How is your thinking about that? Because I'm a bit surprised because mild beer is so small in India at the moment. Or is this the opportunity to maybe bring it back into the market?

Let me start on the back end. We have finished these programs you talk about, base 27 markets, mainly in APAC, AMEEE and in the Caribbean are live. That was an end-to-end transformation, standard process, technology and data. We deliberately started there a few years back to go to smaller and we sold easier markets to change all the business process and to align. We are now finishing SHARP-X. You've heard about that, which is an SAP for all the -- people [indiscernible] implementation in Europe, which was much more complex, 23 markets in Europe, and we just went live with the last 3 markets. And that also gives us the confidence that we know how to do that because these are -- again, these are not technology deployments. These are real business change in markets. So we need to make sure we face that and we pace that in the right way. And these things are stepping stones towards our new modular, much more modern architecture that also will lead to productivity gains. And I hope Harold will come back to that tomorrow morning.

Yes, with regard to your question on Heineken Silver in India, indeed, traditionally, the strong segment is an important segment in India. A couple of years ago, United Breweries launched Kingfisher Ultra, which is doing very well, really appealing to a new generation of urban consumers that are coming in year after year. And also here in India, we have an opportunity to premiumize that occasion with Heineken Silver. So we believe definitely that there's also a market for that in a beer market that traditionally is more skewed towards the strong end.

Robert Jan?

Yes. My name is Robert Jan Vos, ABN AMRO. My first question is for Marc. You mentioned that Heineken Silver is the big bet for next year and you also mentioned the $100 million investment behind it. But you also discussed some issues that held back growth in the U.S., had freight tariffs and the supply chain issues. What are your views on that for 2023? I would assume this should improve next year versus 2022. Can you comment on that, please?

No. The crisis on the ocean freight was mainly Q2, Q3. This is now resolved. So we would not have announced the launch of Silver. It would not have the guarantees from the carriers that it would be back to normal. So the prices are still above the prices, the historic prices, I would say. But in terms of availability of carriers, that's back to normal.

So that should be better?

Yes.

Okay. My second question is for Dolf. I think in your introduction, you said -- I hope I'm paraphrasing correctly, but you said that, in the past, you may have stepped a bit too strongly on the break with marketing in order to meet your operating profit target. That comment suggests that you see kind of an optimal marketing budget as a percentage of sales. How far are you below that currently? And to what level do you expect that to increase?

Very good. Thank you, Robert Jan. One clarifying part on the ocean freight to the U.S., because of hedging, the real impact is actually really landing next year financially. Because for this year, we were still protected by the hedge prices of late last year. So there's really 2 parts, the disruption, out of stocks. We really believe that's now behind us. So that should not hold us back next year. The financial impact is really still quite severe next year. Although more recently, we are starting -- tariffs' starting to go down. On the marketing and selling as a percentage of revenue, nobody knows what is the right number. If you look to L'Oréal, it's 30% plus, and they have a beautiful 70% plus gross margins. If you look to the spirit companies, they are in the 16% to 18% range and their gross margin's in the 60s. The brewers have gross margins in the 50%, 55% kind of range. And I think we are more low teens. And then because of COVID, of course, and all the price increases, that's now hovering around that 10% mark. I don't know scientifically what's the right number. But I really believe as the category boundaries are blurring, the competition is much broader than your traditional beer companies, then we will have to find a way to structurally, consistently increase our marketing selling as a percentage of revenue. And we don't have an endpoint, but that's why the productivity is so incredibly important, and not just 1 or 2 years in the crisis, but structurally, to at least have the ability to continuously start taking that percentage up. The thing that culturally we're trying to change is that there was a lot of leeway, a freedom with local management teams that if they were struggling to hit their operating profit target to just stop spending marketing, selling in Q4. That we really want to eliminate because it's not strategic. It's not sustainable. It actually affects the efficiency and effectiveness of your marketing spend that we think we have addressed by making it conditional, your operating profit bonus target is conditional on your marketing selling. The beginning of this year, everybody was still, are they really serious about this, I think they've found out by now that we're serious about it. So that addresses the behavioral component. What's more important, and Harold is going to speak about it tomorrow, is to get that flywheel going. That ultimately, you have superior growth, you take more productivity out, part of that, you reinvest. Your gross margin starts growing, more growth, more productivity. That's the flywheel that we're trying to really ignite. And we were not happy how the growth wheel was, in a way, moving the wrong way between 2016 and '19. And of course, now it's all a bit hard to see through because COVID and all the different components. But we're firmly committed and this is really at the heart of EverGreen to get that flywheel going and heading in the right direction. And I don't know where it's going to end, but it better be structurally starting to go above 10% and creeping up year-over-year. That's what we would aim for.

I'm Carlos Laboy from HSBC. There's so many good operating questions to ask, but I have to ask Yolanda. Yolanda, we heard today about purpose, values, strategy. But to move the strategy into action, you need to codify the behaviors to define the success of the next generation of leadership. And I was curious, how are those behaviors, how are they codified, first of all. But really, how are those behaviors differently from the behaviors of defined success for the last generation of leadership. And then how do you use this to drive culture, maybe that second question is for Dolf as well. Because we don't get any of this without that behavior codification being really clear across the entire organization.

Should I give it either me start and then I pass it on Dolf. It's a great question. And as part of the work that we have done recently is that we have looked at the behaviors that we need to drive the culture. So as I talked about developing a new potential model, how we do assessment centers, we also created a whole new set of what we call the Heineken behaviors for all. So they apply for everyone in the organization. And they are divided in 4 pillars. The first of them being shape, deliver, develop and connect. These are the 4 pillars that you think about shaping a shaping the strategy. it's about thinking consumers and customers first. It's about taking courageous and bold moves. Deliver is all over bringing it to life. So that's how we -- and I talked about deliver being one of the biggest behavior -- circular behaviors that we see in Heineken. You move there from develop. Develop becomes extremely important because how we will hold our leaders accountable for development of the people in the organization. And connect is really about coming together with empathy, coming together to create the right space. So based on those 4 pillars, we have created 8 behaviors. And then additionally, we have created 3 levels within those set of 8 behaviors. And they tackle all the different levels in the organization. So when you think about how we have moved from designing them, how we move to delivering them and making sure that everybody understands them, they're part of performance management as well in the how. So they're measured in performance management, not just from an expectation standpoint, but an assessment standpoint, and that's how we bring it to life. Now when you think about leadership development, and that pyramid that I show with different specific -- the different audiences and how we have segmented the organization, each one of those different segments, we tackle that we bring the behaviors to life in a different way depending on the level of the audience.

Good. Thanks, Yola. And by the way, Yola and team did an amazing job at actually indeed operationalizing the purpose values to these behaviors at different organizational levels, tying it to end of year calibration assessment centers, 360 degrees. So I really feel that we are building the kind of structures to start moving the behaviors. When I think about the behaviors we want to sustain versus the behaviors we really want to jump start. And within those 4 buckets, the deliver -- deliver results, it's very good at Heineken. There is a pragmatic no nonsense culture. We call it delivered goods. When you promise something, you do it. That's what we want to preserve. That no nonsense execution kind of focus. The shape was less developed. So to be really kind of forward thinking, shaping future strategies, making big bold courageous moves, there was a bit of an incremental culture in that sense. So we are really addressing that through how we assess, evaluate, promote people, but also in how we design our strategy process. So for example, we realized that the way we were doing annual planning process versus strategic planning process, that our strategic planning process was basically a rolling annual process. It was just extrapolating it rather than really thinking both full potential and then work your way back. And so that's on sustain, protect, the deliver culture and really strengthen the more the shaping the courageous culture. That's why also we added courage as 1 of the 4 values. On the other side of things, between connect and develop, but we need to protect this connect and we are weak culture, a very people-oriented culture. You see it reflected in those engagement levels, the green blocks that is something that we don't want to -- as we are dialing up performance management, we don't want to come to the detriment of that. But we were less of a developed culture. For example, we were historically not a feedback culture because we like to be nice, there was also quite some harmony. And sometimes given each other feedback affects that. And what we're really trying to build is, hey, you can have that feedback conversation. You can have that constructive kind of conflict conversation without affecting the we nature of the building. So we're really boosting shape and develop. We call it having the real conversations and being comfortable in having the real conversations. And we as a team need to role model that. We fully realize that, while preserving our no-nonsense deliver culture and our kind of connect people culture.

It's Laurence Whyatt here, Barclays. A couple for Roland on the digital piece, if that's okay, particularly around Latin America. There are a number of companies launching digital apps in the marketplace at the moment. And a few of those already are selling third-party products as well, potentially giving them a bit of advantage. We know ABI has, I think, around 100 partners on this. I think Unilever doing something similar, and we also have the soft drinks companies potentially launching apps. You mentioned people are only going to have, say, 3 to 5 apps that they're going to use. What makes you so confident that Heineken is going to be one of those? And I suppose, why did you not consider partnering with one of the existing app operators that perhaps shortcuts your route? And then secondly, what's the key reasons that customers are not going digital? Are there any key barriers that are more challenging than others?

Yes. I propose I'll give it the first go, but I would also like Marc to lean in from the markets themselves. Yes, there's an explosion of players in market, not just in Latin America, also in Southeast Asia, as I was explaining. Why do we think we have a right to win and why do we do it ourselves? That starts with really knowing our customers and having very, very strong customer relationships. It starts with that. It starts with the credibility of doing it. It's not just a technical solution and building a platform or an app. You saw the scores on the app. That is not just about the technology, obviously, that is about the relationship we have, the services we offer, the insights we create. And I truly believe that if you look at what Heineken excelled in the past, I said we want to become the best connected door. Actually, we are great at those connections. The strong brands we have with our consumers, the relationships our sales rep had with all those outlets, that's the starting point. It is, in that sense, much easier for us then for new incumbents to the marketplace. There are not great examples in B2B. There are not great examples in B2B of outside players that have built significant positions in the world. So that's one. We're actually open to partnering. So we -- in multiple markets, we look at working with other people where it makes sense from a geographical point of view, from a category point of view, so absolutely what we believe and we can do. It's a choice we make market by market. So that's a bit of a 1b question, I think you were asking. And the last part, why are people not onboarding on the app. A lot has to do with the adoption being digital native or not, but also seeing the value there. So like we said in Nigeria, we really have to help bring our people on board. And they're not most necessarily the normal people. So we have created personas of outlet owners of customers. And those personas are not -- this is a restaurant, and this is a wet-led pub. No. Those personas have to do with how digital native those people are. And like I said, the lady in the U.K., literally the first order, a 71-year-old lady at 1:00 a.m. at night, it says something about her, probably she did online banking for years already. So there is a different -- and it will take time. And so we talk a lot about digital transformation. I am not a big believer anymore that overnight, it all changes. It is a gradual process that will accelerate over time and it requires change, nothing else than that to onboard and create an option. But Marc, maybe specifically because Brazil and Mexico.

Yes. I can give a few more color. So we speak with some other parties and we have in some regions, pilots also going on. The app that you were referring to with 100 suppliers on -- is today back to 60. So they have major problems. I think Roland also shared, we have twice the market share on the modern trade.

E-retail.

E-retail. There is a reason for that. Because those large volume trade players, they are not so happy with the initiative of these. So we take a little bit of more time. We speak with different kind of potential partners, and we do that in a harmonized way. So it's not in isolation in the Americas. It's something that, in the end, is every time a kind of goes to Dolf to make sure that we would not make a stupid deal in the Americas that conflicts with another deal in other region. So -- but we take our time. I think it's not head down, and it will not happen overnight. I fully agree with that.

Sanjeet Aujla from Credit Suisse. A question for James first. You spoke quite a bit about beer still being underpenetrated in certain consumer occasions as you try and tap into that and think about innovation. So far, a lot of innovation you've spoken about today's line existing brands. When you look across the portfolios, there are enough to sweat still out of those existing brands to leverage them into those. Or does Heineken need to start developing new brands from scratch as well? Or do you go out and try and acquire? How do you think about that innovation road ahead?

It's an interesting question. We've got more than 300 brands, so we've got quite a few to choose from. And what we're looking at, by and large, is what is the right proposition for the right consumer spaces that we go after. So we choose the proposition first and then have we got a brand to suit us. And then if we haven't, then there are other choices to look at. And I don't believe in overextending brands. I think brands have tram lines for where they go, where they don't go. That's why, again, you saw in one of the countries where we looked at reengineering our portfolio and getting those brands positioned in the right spaces very well and very clearly is so important. That's why this is an insight that we've generated is going to help us. So there isn't a sort of cookie cut in answer to the question. Our brands do have power, can't extend, particularly once repositioned, but we look at the consumer space first and then work back.

And just 1 for Marc. Just on Mexico. I think you've started a pilot there with Coke FEMSA, I think in the south of the country. Can you just talk a little bit about how that's shaping up, what you're trying to achieve? And how far that can potentially go if the pilot is successful.

That's a very early start. So we indeed have a pilot in the south of Mexico with FEMSA. And at this stage, I can't comment. I mean, it is an important strategic pilot and the outcome will depend on the benefits of both parties. It should be a win-win. And today, I can't comment, we just started the pilot.

What may be good to add to that is that at Heineken, we don't believe it's going to be a cookie-cutter approach, where we just take 1 dominant way, and we force it through the throat of all our OpCos wherever you are. Already, we differentiate strongly between the archetypes and even within the archetypes and even within countries, we are learning. Like in Vietnam, we're learning that in terms of digitizing the route-to-consumer in the north versus in the South, in the on-trade versus off-trade, there may be different ways of going about it. And in 1 channel, we want to really own it because we are sufficiently large to do so. And in other channels, you may say, I'm going to be a part of somebody else's platform. So you're really going to start customizing it more to the needs in that particular market, and Mexico being a case in point. In the north, we probably don't need it, but some parts in the center and the south, the Coke's network will really complement and give us additional reach and service level that stand-alone will be difficult. So we are indeed really kind of looking into all those kind of things. And you may also maybe say that as a culture and how we work together, we are good in joint ventures. We're good in partnering with others, which is a bit of a strategic asset because that's not easy. We all know it's hard to partner between proud global companies, but this is something that we do in many places around the world. And that's why I like how the team is going about. Let's not rush into 1 way, but let's really find our way what is the most compelling and learn very fast alongside.

Ed Mundy from Jefferies. Dolf, 1 question for you, first of all, on superior growth. You talked about superior and balance growth with a better balance in volume and value. Philosophically, does that -- is that purely so that you can convert your top line into better gross margins and therefore drive margins? Or do you think this also as an enabler of more superior growth, i.e., could you actually drive stronger growth as you take more price and premiumize and more assertive on that side of the equation? And then the second question, I mean you talked -- Dolf, you talked about playing Champions League, you need to and defend. Given we've got, I guess, the regional heads for a lot of the attacking parts of the business, do you feel that, that message has got through to your troops that if you are able to defend and cut costs, that will then release more money to be able to reinvest in growth and attack more effectively. So it's perhaps a question for each of the regional heads here.

So you guys have 2 minutes to think about it. But by the way, very good, Ed. To have it come from the regional presidents because they need to bring this to life in the day to day and that the creative between driving top line and delivering the productivity. On superior balance growth, why do we feel this is important? Beer is the most capital-intense FMCG category. And what we were finding is that the organization was so incentivized literally and culturally to drive volume, that there's a lot of places where that is a financially not sustainable way of going about it. So for example, in Africa, you really need to think hard because your is super high. It's often mid-double digits. To implement CapEx projects is significantly more expensive in Nigeria than it is in Vietnam, for example. So we really felt if we just unleashed this company continuously on volume, volume, volume, the amount of CapEx that you need to put in and the impact that has on your economic profit, that was not the path that we want to go down. So indeed, making this shift from a more volume-driven to a more balanced driven is really because we are in such a capital-intensive business and part of EverGreen is also to start paying more attention to return on capital, capital efficiency, capital turnover. We are deliberately not yet putting a number on that because we feel we need to learn a lot. We are putting the right language, metrics in place. Harold will speak to that. But that's really with that in mind. So that means that we are looking for a superior growth with a better constitution. Whether that ultimately leads to a higher offal we will see. That's why also deliberately, we're not putting a number -- revenue number on that because we're still really learning how is that all going to work out. Well, we hold ourself accountable. We always want to be in the top group in terms of top line growth. So we don't want to become overly focused on pricing, killing the volume growth and really dropping revenue growth. That is very clearly not where we want to be. But we really are learning, okay, how do we get this, how do we boost revenue management, how do you manage all the trade-offs that you will have to make along the way. But great to hear from you guys on growth and productivity.

Yes. EverGreen is a multiyear journey, but it was actually kick-started in the midst of the COVID crisis. So the pillar that we started Evergreen with was actually the cost pillar. And that was on one side to protect the organization. On the other side, it was to fuel the growth. But this is really a muscle that we have been exercising over the last 2.5 years, especially when we were in the process of, if I speak for APAC, of looking at different countries with a V-shaped, U-shaped and L-shape recovery. And especially for the L-shaped markets, we had to do some significant restructuring. I think as we now are well in our COVID recovery phase, yes, this is a muscle that we need to continue to exercise because we need to fuel for our growth engine. And that is the balance that we are currently finding. Top line, I think, in APAC, we very much have a history of revenue -- absolute revenue growth, predominantly driven by volume. And in the current market circumstances, that's a little bit more volume and pricing. And what I believe is a big mix opportunity that I spoke about this morning. Roland?

What is the shift in my region, you have to grow. And when you see -- and due to the volatility and the environment and the low net revenue per we have been always focused on the cost. What is very new is the brand power. The brand power, allowing you to -- either brand power allowing you to gain market share, but also ability to price up your brands. And that is very new for the region. The cost agenda was always there, the productivity. What is new, reduce even more your cost in order to finance and to fuel your growth and to support your brands. In Africa, Middle East, we have been -- the tenancy that's what Dolf described to say to deliver the goods, cut your ETL BTL, and this 1 is the big shift now. We are really continuing to reduce the cost, to reduce the capital intensity, but let's be sure that we are fueling the growth. And you can see already that we're increasing our brand power in all of the markets a lot.

And I do want to also give my little flavor on your question because you mentioned it's kind of almost a waiver for the what you call the attacking regions. So I can be very clear on that. All of the regions we have to contribute to the gross savings targets that we set globally and on a monthly basis, I was referring the ranking, which region serves the most Heineken and there is the same kind of follow-up by region on a monthly basis on cost savings. So there isn't any waiver. Everybody needs to deliver to the cost savings target that we set globally.

Maybe on that note, you may have picked up on it in the presentation of Yolanda on our kind of bonus targets. So we didn't want to rock the boat too much on our kind of the SDIs that are most visible, revenue, cash flow, operating profit market share. But every manager in the company has 30% individual targets, that in the past, people could do with it what they wanted. And what we have said for our top 1,000 leaders, every single one gets a gross savings target and everyone gets a gross margin target. And that's very new. So again, it's not just chasing volume and delivering your profit whatever way. Every senior manager in the company, and now we are going into the third year of having a growth savings target, and everybody has a gross margin target to bring that awareness about are you putting in enough pricing? And I love what Ronald said, because long term, your pricing power equals your brand power. Your brand power is to a large extent driven by your ability to invest in marketing and selling. So I think slowly, but surely, the organization is starting to connect the dots and it's really tied into our SDIs and how we're certainly, but importantly, evolve them. Yes. Thanks, who's next?

Andrea Pistacchi from Bank of America here. Two questions. The first one on soft drinks. You, through the presentations today, you haven't talked about soft drinks. Now clearly, there's a lot of opportunity in beer. But as the lines between categories become more blurred, some of the other brewers looking increasingly at the soft drinks space. It will be interesting to hear your thoughts about soft drinks and how interacts with beer. And the second question, I don't know if it's appropriate for today, possibly for tomorrow. If not today, we'll -- we can do it tomorrow. But on the distribution business in Europe, which has typically been a low margin, but a strategic business for you. You're talking about the digitalization of the route to consumer. So interested in how this and potential efficiencies can -- is improving and can improve the profitability of that 1.5 billion of distribution third-party sales in Europe.

Very good. Let me speak to soft drinks and then maybe Ronald, you can speak to Europe. On soft drinks, we have a couple of important markets. For example, in Central Africa, where we have the Coca-Cola license, we have in we have the Pepsi lines, CCUs partnering. So we have many markets, where we have the bottling rights on either Coke or Pepsi. And typically, I think the mental model has been, where there's relative lower per capita beer and soft drink, it really makes sense to share your logistical platform. So -- and that's -- we don't see change. Now to really go into bottling in a more major way, actually, the bottling margins typically are lower than beer margins. So I'm not so sure that we would be too keen to do that at a systemic scale. It would be really done market by market because it makes sense for the local circumstances, so to say. From a B2B collaboration point of view, I think we're really intrigued. And back to Sanjeet's question, we're really kind of doing the experiment with Coca-Cola in Mexico. And there may be ways also in higher per capita to collaborate. But I'm not sure you want to be the bottler itself, but for sure, more innovative, creative ways of sharing distribution platforms. And we'll see how that evolves.

Yes. I'll pick up the second. By the way, we have a joint venture with Coca-Cola in Romania. Yes. So it's -- we share the same platform. We share the same distribution. We share the same -- so indeed, we are learning, we're experimenting and I think we do what is right, depending on those circumstances. For wholesale Europe, and to some extent, Soren tomorrow will come back to productivity gains in Europe. One, yes, the return on sales of wholesale is not low. But the capital deployed is very low. it is sometimes even negative. We have markets where our working capital is negative in wholesale. So it is -- there's multiple ways to look at that business. Secondly, I think wholesale is now -- we say it's -- we have the biggest marketplace in Europe. It was physical. It's slowly virtually becoming an online marketplace. And the teams of Soren in every single market are making a massive drive as I showed in Italy, to really bring that online, which helps us also to sell a broader category services over time. Are there opportunities for further optimization? Absolutely. The team of Soren in all the markets are on top of that, not just in wholesale, but in all of out-of-home, on-trade in total both in, let's call it, the feet on the street, they do different activities and more efficient as well as the back offices where we're looking at.

Trevor Stirling, Bernstein. The first question, I guess, for Marc. Look, I think if I heard you right, you were considering building a canning factory in Mexico?

Yes.

With hindsight, if you could go back in time, would you still dispose of EMPAQUE?

Back then, we had a famous for cash program and that EMPAQUE factory was indeed sold back then at a good price to be part of that handful cash. So with hindsight, we would not have sold it. No, I don't think so. So -- but it is what it is. So we are going to build a new factory in the Nordic next to our brewery in Meoqui.

The second question, I guess, for Yolanda and Dolf, thinking of gender balance across the organization, [indiscernible] it's going to vary by function. I could be wrong, but my impression has always been historically country general managers were the worst. So I guess, put it another way, how do you get more [indiscernible]?

That's a great question. I did mention that we are having -- we have declared several interventions in the space of diversity, equity and inclusion. One of them is increase the number of females leaders across the organization. The other one is to also increase what we call the cultural diversity measured by regional representation. So it's 2 things that we try to do, right? We try to make sure that -- and the senior managers in female really includes all the general managers as well, which really try to create promotion from within and have a stronger internal pipeline. So when I show the pyramid and I show the growth that we are trying to drive, the intent is we are able to feed into the higher levels of the organization to ensure that we can identify those [indiscernible]. On the other hand, we find very important as well that we have a balanced representation of nationalities and culture everywhere where we operate. So we have also set a target of reaching 65% of regional nationals and all the management teams in all the regions. So we are also seeing actually quite progress all the regions, the 3 regions, but not Europe. Europe -- in Europe, we have a different challenge, which is bringing people outside of Europe. But in the 3 remaining regions, we are already over 60% towards achieving the 65%. So we believe that by actually tackling both, we should be able to see an increased level of culture diversity and women in our top positions.

Yes. In the top 150, 50% of that group turned over between 2019 and today. So there was a little -- and by the way, 80%, 90% organic internal promotions. The weight of females doubled. It was arguably -- and 2019 is not that long ago. It was low teens, and it's now low 20s. So we're heading in the right direction. The top 150 is basically half country managers, half functional leaders. Now in the functional leaders we're probably already heading to the 30% with the country managers, it's significantly lower. It starts by starting to appoint female candidates for the entry-level general manager position. So we have Maud in Sri Lanka. We have Nadia in Serbia, in Bulgaria, now in the Bahamas. So we're starting to appoint much more entry level. So that -- because you need to fill it from the bottom up. We won't hire a lot of people in regional president or GM roles from the outside because that's -- you really need to have a feel for the company, the culture, the way of working. So the only way is to really bottom up, make it work and accelerate. One thing to clarify, which is important because it came up during lunch with another conversation that we are firmly committed to diversion, inclusion. After a lot of debate, we put a number on the gender target of 30%, but it needs to be merit-based. I don't ever want one of our female colleagues to feel she need to defend. No, I'm here because of merit because they are there for merit. So it's all about the equality of opportunity, but ultimately, the best person wins. And including sometimes that may disappoint organization because out of multi-gender candidates, we pick the man because he's in that particular case, the best candidate. So I feel proud that we are basically doubling the rate at which it is going up. It was going up by 1% a year, it's going up by 2% a year. If you continue that, we will hit 40% by 2030. But it's really important that you maintain the integrity that is merit-based. And if you overdo it, you start getting concerns around that. Yes.

It's Mitch Collett from Deutsche Bank over here. And I've got 1 question for Dolf. So the focus on being a bit less volume growth driven, but bearing in mind the EUR 400 million of annual cost savings you're targeting beyond 2023. Dolf, can you comment on what you see as the optimal mix of revenue versus margin contribution to organic operating profit growth. And I appreciate you're not going to want to be drawn on a margin target, but you used to talk about 17% as being a north star at some point in the future. Does growing profit ahead of sales mean that, that aspiration might potentially come back into play at some point in the future?

I learned my lesson. On my first press conference, I made a mistake of putting that 70% budget, and boy, I regretted it. Now what's really important is and what we call the quality of our growth, the shape of our P&L. That is really the shift that we're making, that we are superior growth, but indeed quality growth with a bigger component of pricing. And that really depends on where inflation is going to pan out in the world that we don't know. Historically, if you would get 2.5%, 3% pricing, it was fantastic. It was probably globally in line with CPI. We don't know where that's going to go, and that's why we're refraining from putting a number on it. The direction -- and by the way, we also don't want to suggest that we're walking away from volume growth. We love volume growth. And also in a capital-intensive business, you'd also do need volume growth. So it's about quality of revenue growth, we'll see how it pans out depending on where inflation rates in the world pan out. And we fully subscribe to the rationale that you need to make sure your operating profit grows faster than your revenue. And we're also acknowledging that in the period 2015, '19, we have not been delivering that. And it was partly because our fixed costs were structurally every year growing faster than our revenue that needs to stop, that really needs to stop. And I think that is really starting to be firmly aligned in the ways of working and the expectations that we are setting. We are doing it right now without having volume leverage because we are coming out. But basically, this year, our volume will be a couple percent above '19 level. But we will deliver -- let me speak for the half year because otherwise, I say something on the full year. But on the half year, we were delivering EUR 400 million incremental operating profit on basically flat volumes versus 2019. Without operating leverage, but we're delivering that EUR 400 million. That is because of the incredible hard work done, both by the regional presidents and the functional chiefs. And what we want is that to become the new normal, just being part of playing Champions League, and that's why we are committing open-ended to that EUR 400 million a year. We believe the EUR 400 million a year provided that you have good pricing because then there's less gross margin slippage you need to compensate with your saving. So provided we have good pricing, EUR 400 million should be enough to end continuously up our investments, whether it's in digital technology, marketing and selling, sustainability, decarbonize and make sure that we have operating leverage going forward. And we will see how it exactly pans out. There's too many announced, too many assumptions you would have to make that we rather don't box ourselves in on it.

James Edward Jones from RBC. Dolf, you've talked a lot about the need to be more selective around your capital expenditure and the capital intensity. Does that apply to M&A as well? Or how big a part of your plans is M&A likely to be compared to what we've seen over the last 10 to 15 years.

Yes, as it should, and it has been. I do feel if -- I'm incredibly proud of the work done by Jean-Francois and the leadership at the time. I think the organization has been very bold, but also very disciplined on our M&A. And basically, every single acquisition, we have delivered the business case after capital charge and what have you. Now going forward, what is really different from the time that Jean-Francois became CEO is the company is more than double the size and the remaining targets out there are probably smaller. So the net impact that acquisition will have for us the next 10 years, by definition, will be smaller than it was in the last 10 years. And that's why in the way we are planning, leading the organization, we want it to be all about driving it organically. And then the acquisition is gravely on top of. That's how we are thinking about it. When we're doing our strategic plan, it's all about the organic performance of the OpCos. And then separately with our strategy and business development team, we look at M&A. But yes, I really feel that I don't think consolidation is ending. It will continue, but the net impact by nature will be smaller than it used to in the past. And therefore, we need to take responsibility and really up our game on the organic part.

We're going to take 1 last question today. Tomorrow, we will have more time for Q&A.

This is Greg with Evercore. On the B2B side of the business, like how do you go about educating the customers you're going to that this offering is there is something that they can use. And then once they sign up, how do you educate them about what they can actually do with it, like how they can drive a lot of the benefits that you talked to us through earlier.

I guess that's one for me. I'm going to take a market I didn't show today, Spain. So for quite a long time, we struggled in Spain because -- and actually, it was our feeling and the feeling of the market that it was difficult to digitize in Spain because the market was not ready for that. And a lot of other digital products, also online banking are actually lower in terms of penetration in the rest of the world. Then we have good sessions with the local leadership over there. They completely change the approach, including like leaflets -- online leaflets, but educate remarkable to see today. And I don't know the number by heart. So maybe Soren can say that tomorrow when we're there. It's one of the fastest-growing markets today in Europe. And why? Because the unlock was first in the mindset of our people that the country is not ready for that. Secondly, they really make it simple to create adoption again at the point of sale. And I think the guys have done a remarkable job. So explaining what it is, how to use it. And over time, there will be more features being rolled out. Because you basically start, and to start with foundational work with taking an order online. Why would I take an order online? Well, because except for us disturbing your business on Tuesday morning between 9 and 12 because we can buy or because we pick up the phone and call you at the moment, that doesn't suit you, you can place that order at 1:00 a.m. in the morning. When you close your business, you can walk and you sell it. So it's convenient. But taking them through -- and I think this is a really good example. Southern Europe was much slower than Northern Europe. U.K. started 10 years ago. And this really was about a mindset change for ourselves, education and support material for our customers, really creating an end-to-end adoption I think they've done a hell of a job. Yes.

We request to add 1 more last question.

Rosana [indiscernible] from Aberdeen. I had a question about female consumers. And I suppose that stat that you put up at the beginning, James, about the 20% higher the way that it lands with men than with women. What would that statistic look like if we looked at it 10 years ago? And where are most of those, if we could talk in, I suppose, a broad generalization about recruitment of female consumers, is there a lot of that coming from 0.0, and that will obviously be a range across the different regions. But also, I suppose, interested to know whether you think those consumers in general are more fickle and where you're sort of taking the share of throat from is that people new into the category and how long they stay in the category and with you for.

It's a good question. I don't want to give you a misleading number. I haven't got it in my mind. I don't think it would have changed materially. And part of the reason for that is, I think we have certainly in developed markets, not until recent years, been refreshing the consumers at the younger end as well as we intend to and have been in recent times. It's certainly true that 0.0 has helped that. It's certainly true that Heineken Silver has helped that. It's certainly true there's some of our other have helped that. So we do expect that to accelerate. But I talked this morning about what we loosely called Beyond Beer, which is more flavors, sweeter perception of functional benefits, sometimes perception of natural sometimes, perception of lighter. And I think there's so much opportunity in that space to broaden the target, broaden consumer appeal. I also think there's so much opportunity in the flavor profile. As I said, 90% of beer is larger and tastes -- you can taste the difference, but you have to look for it sometimes. So again, I think we -- as we look at consumer back rather than product out, we start to see massive new opportunities for us. You've named a couple there.

And I think we're going to taste some of them right now downstairs, right? Give us some [indiscernible].

First, I'm going to close the session for our -- the people that have been following us online. We thank you very much for your interest in Heineken. And please join us tomorrow as of 9:00 a.m. as we will resume the webcast. So thank you very much.