HEIO Heineken Holdings

Amsterdam, 31 July 2023 – Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) announces:

• The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for the first half year of 2023 amounts to €589 million
• Revenue growth 6.3%
• Net revenue (beia) 6.6% organic growth; per hectolitre 12.7%
• Beer volume organic growth -5.6%; Heineken® volume 1.7% growth (excluding Russia 3.7%)
• Operating profit growth -22.2%; operating profit (beia) organic growth -8.8%
• Net profit growth -8.6%; net profit (beia) organic growth -11.6%
• Diluted EPS €2.04; diluted EPS (beia) €2.03
• FY 2023 outlook updated. Operating profit (beia) stable to mid-single-digit organic growth.

1 Consolidated figures are used throughout this report, unless otherwise stated. Please refer to the Glossary for an explanation of non-GAAP measures and other terms.Page 15 includes a reconciliation versus IFRS metrics. These non-GAAP measures are included in internal management reports that are reviewed by the Executive Board of Heineken N.V., as management believes that this measurement is the most relevant in evaluating the results. Heineken Holding N.V.’s half year report has not been audited nor reviewed by its external auditor.2 Organic growth shown, except for Diluted EPS (beia), which is total growth. 3 Includes acquisitions and excludes disposals on a 12 month pro-forma basis.

Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.

During the first half of 2023, HEINEKEN focused on executing its EverGreen strategy to deliver superior and balanced growth in a fast-changing world while transforming its business to be future-ready. HEINEKEN is making progress, albeit some short-term challenges given the volatile economic context, with the slowdown of the economy in some countries and unprecedented inflation levels.

HEINEKEN's focus has been on its EverGreen priorities, starting with its dream to shape the future of beer and beyond to win the hearts of consumers. HEINEKEN is also shaping the future with its ambition to become the best digitally connected brewer, raising the bar on sustainability and responsibility and evolving its culture, operating model and capabilities. At the same time, HEINEKEN is stepping up on productivity to fund the investments required for its brands, digitalisation, capabilities and sustainability, and improve profitability and capital efficiency.

HEINEKEN's ambition is to deliver sustained superior growth with a healthy balance between volume and value growth. HEINEKEN aims to achieve this through launching winning beverage propositions in fast-growing consumer segments, building and scaling strong premium brands everywhere and further developing its advantaged geographic and portfolio footprint. This year, HEINEKEN front-loaded significant price increases, often leading the market, to offset unprecedented levels of commodity and energy inflation, which impacted consumer off-take.

Revenue for the first half of 2023 was 17,436 million (2022: 16,401 million). Net revenue (beia) increased 6.6% organically; a combination of a 5.4% decline in total consolidated volume and a 12.7% increase in net revenue (beia) per hectolitre. The underlying price-mix on a constant geographic basis was up 11.8%, principally driven by the strong inflation-led pricing, whilst mix was slightly positive driven by premiumisation. Currency translation negatively impacted net revenue (beia) by €91 million or 0.7%, mainly driven by the Nigerian Naira, the Egyptian Pound, the South African Rand, the Indian Rupee and the UK Pound Sterling, partially offset by a strong Mexican Peso. Consolidation changes had a positive impact to net revenue (beia) of €231 million, mainly driven by Heineken Beverages in Southern Africa and Beavertown in the UK.

Beer volume for the first half of 2023 decreased 5.6% organically versus last year. The cumulative effect of pricing actions taken and a challenging economic backdrop led to a 7.6% organic decline in the second quarter. A disappointing performance in Vietnam and socio-economic volatility in Nigeria affecting consumer off-take accounted for over half of the decline in the first six months. The Americas region was impacted by a soft beer market, notably in the second quarter, combined with the continuing impact from OXXO mixing in Mexico. Volume in Europe performed broadly in line with HEINEKEN's expectations for the first six months. HEINEKEN gained or held market share in more than half of its markets.

Premium beer volume declined by 6.5%, driven by Vietnam and Russia. Outside these markets, premiumisation trends remain strong as premium volume grew by a low-single-digit, ahead of the total beer portfolio in aggregate and in more than half of HEINEKEN's markets. The growth was driven by Heineken®, further supported by the growth of Desperados, Birra Moretti, Beavertown, Bedele Especial and El Águila among others.

Heineken® continued to lead HEINEKEN's portfolio and grew volume by 1.2% (2.1% excluding Russia) in the second quarter to close the first half with a 1.7% increase (3.7% excluding Russia). Growth was broad-based across 50 markets, most notably in China, Brazil, Mexico, Ethiopia, Panama, Portugal, Croatia and Algeria. Heineken® Silver is now present in 45 markets and grew volume by more than forty-five percent, led by China, Vietnam and Mexico. We continue to build Heineken® Silver across European markets and the launch in the USA shows promising early results as we scale distribution and reach more and more consumers.

HEINEKEN's EverGreen strategy is a multi-year and multi-faceted journey to future-proof the company and deliver superior, balanced growth for long-term value creation. HEINEKEN has executed its plans in line with its EverGreen priorities and HEINEKEN is making clear progress in building a premium portfolio, driving consumer-centric innovation, digitisation, sustainability and in improving productivity.

In the second half of 2023, HEINEKEN expects significantly improved operating profit (beia) growth inclusive of:

• Lower pressure from inflation in input costs, transport and energy & water, from mid-teens in the first-half to low-teens in the second-half on a per hectolitre basis
• Pricing starting to moderate with volume trends gradually improving to a low-single-digit decline
• An improved outlook in Vietnam and Nigeria, relative to the significant disruption in the first half
• A similar absolute level of investment in marketing and sales when compared to the first half
• Productivity savings delivering at least €300 million, cumulatively well-ahead of the €2 billion gross savings target.

Overall, HEINEKEN's updated expectation for the full year of 2023 is stable to a mid-single-digit operating profit (beia) organic growth. HEINEKEN also anticipate an average interest rate for the year of around 3.2% (2022: 2.8%). Other assumptions on CAPEX and effective tax rate are unchanged.

Looking ahead, the unprecedented commodity and energy cost inflation in recent years will be partially reversed next year, easing the pressure on pricing. Together with the structural changes HEINEKEN is making with EverGreen, HEINEKEN is confident this will set HEINEKEN up for a balanced growth delivery in 2024, while HEINEKEN remains cautious about the macroeconomic and geopolitical environment. HEINEKEN's strong cost and productivity efforts will continue and enable further support behind its growth agenda, fund investments behind EverGreen and contribute to operating profit growth. Therefore, HEINEKEN's medium-term guidance of superior, balanced growth with operating leverage over time remains unchanged.

Based on the impact to date, and applying spot rates of 27 July 2023 to the 2022 financial results as a baseline for the remainder of the year, the calculated negative currency translational impact would be approximately €780 million in net revenue (beia), €110 million at consolidated operating profit (beia), and €30 million at net profit (beia).

According to the Articles of Association of Heineken Holding N.V. both Heineken Holding N.V. and Heineken N.V. pay an identical dividend per share. HEINEKEN's dividends are paid in the form of an interim dividend and a final dividend. In accordance with its dividend policy, HEINEKEN fixes the interim dividend at 40% of the total dividend of the previous year. As a result, an interim dividend of €0.69 per share (2022: €0.50) will be paid on 10 August 2023. Both the Heineken Holding N.V. shares and the Heineken N.V. shares will trade ex-dividend on 2 August 2023.

(events also accessible for Heineken Holding N.V. shareholders)

HEINEKEN will host an analyst and investor conference call in relation to its 2023 Half Year results today at 14:00 CET/ 13:00 GMT. This call will also be accessible for Heineken Holding N.V. shareholders. The call will be audio cast live via the website: www.theheinekencompany.com. An audio replay service will also be made available after the conference call at the above web address. Analysts and investors can dial-in using the following telephone numbers:

United Kingdom (Local): 020 3936 2999

Netherlands (Local): 085 888 7233

USA: 1 646 664 1960

For the full list of dial in numbers, please refer to the following link: Global Dial-In Numbers

Participation password for all countries: 394664

Editorial information:Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.

HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium and non-alcoholic beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 300 international, regional, local and specialty beers and ciders. With HEINEKEN’s over 90,000 employees, HEINEKEN brews the joy of true togetherness to inspire a better world. HEINEKEN's dream is to shape the future of beer and beyond to win the hearts of consumers. HEINEKEN is committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brew a Better World", sustainability is embedded in the business. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. HEINEKEN operates breweries, malteries, cider plants and other production facilities in more than 70 countries. Most recent information is available on www.heinekenholding.com and www.theHEINEKENcompany.com and follow HEINEKEN on LinkedIn, Twitter and Instagram.

Market Abuse RegulationThis press release may contain price-sensitive information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Disclaimer: This press release contains forward-looking statements based on current expectations and assumptions with regard to the financial position and results of HEINEKEN’s activities, anticipated developments and other factors. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements also include, but are not limited to, statements and information in HEINEKEN’s non-financial reporting, such as HEINEKEN’s emissions reduction and other climate change related matters (including actions, potential impacts and risks associated therewith). These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, “should”, “target”, “will” and similar terms and phrases. These forward-looking statements, while based on management's current expectations and assumptions, are not guarantees of future performance since they are subject to numerous assumptions, known and unknown risks and uncertainties, which may change over time, that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN’s ability to control or estimate precisely, such as but not limited to future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials and other goods and services, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, environmental and physical risks, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN’s publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this press release. HEINEKEN assumes no duty to and does not undertake any obligation to update these forward-looking statements contained in this press release. Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in combination with management estimates.

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