Heineken N.V. is the most international brewer in the world. The Heineken brand is sold in almost every country in the world and the company owns over 115 breweries in more than 65 countries with a total sales volume of 113 million hectolitres in 2004. Heineken strives for an excellent sustainable financial performance through marketing a portfolio of strong local and international brands with the emphasis on the Heineken brand, through a carefully selected combination of broad and segment leadership positions and through a continuous focus on cost control. In 2004 net turnover amounted to Eur10.1 billion and net profit before exceptional items and amortisation of goodwill amounted to Eur803 million. Heineken employs over 60,000 people. Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange

Date:   22 February 2006 
Location:   Amsterdam, The Netherlands 
Publisher:   Heineken N.V. 

Amsterdam, 22 February 2006 - Heineken N.V. today announced its 2005 full year results at the top end of the profit outlook published in February 2005. 

Key figures 1
 2005  2004  % Change  % Organic growth    (hl mln)  (hl mln)
Group beer volume 118.6  112.6  5.3%  1.8%
  (€ million)  (€ million)
Revenues 10,796  10,062  7.3%  2.2%
EBIT 1,283  1,369  -6.3%  -
EBIT (beia) 1,392
 1,377  1.1%  2.9%
Net Profit 761  642  18.5%  -
Net Profit (beia) 840  803  4.6%  7.3%
  (€)  (€)
Earnings per share (beia) 1.71  1.64  4.6%  -

Heineken achieved organic growth in all key business metrics in 2005: 2.2% organic growth in Revenues, driven by a more positive price and sales mix, 2.9% organic growth in EBIT (beia) and 7.3% organic growth in Net Profit (beia). 
Net Profit (beia) increased by €37 million to €840 million, despite a negative currency effect of €27 million. Net Profit increased to €761 million. 
Cash flow from operations was once again strong and amounted to €2,213 million. Cash conversion continued at a high level, reaching 120%. In addition, the disposal of non-core assets, mainly the real estate assets acquired with the BBAG business, contributed €270 million to net cash flow. 
Group beer volume grew by 5.3% (from 112.6 million hectolitres to 118.6 million hectolitres) with an improvement in volume trends in the second half of the year. 
Volume of Heineken® in the premium segment grew by 4.5% to 20.1 million hectolitres, further strengthening its position as the world’s leading international premium beer brand. 
Beer volume of Heineken USA, excluding distribution of the Femsa brands, decreased by 0.3%. Total depletions – sales by distributors to the retail trade - were 1.2% up and depletions of the Heineken® brand increased by 1.9%. In the second half of the year, both volume and depletions growth of Heineken® accelerated. Volumes of Femsa brands sold by Heineken USA in 2005 amounted to 2.2 million hectolitres (+7.4%). Heineken Premium Light® has been successfully test marketed, and the brand will be rolled-out nationally in March 2006. 
Heineken’s market position in Russia was further strengthened with the acquisition of Ivan Taranov Breweries in the second half of 2005. With 10 breweries and more than 12 million hectolitres on an annualised basis, Heineken’s operation in Russia is now the biggest operation by volume. 
Heineken will address the efficiency and effectiveness of its global operations. The company is targeting total annual cost reductions of €200 million to be achieved by 2008, with the bulk of the cost savings materialising in 2007 and 2008. Unfinished elements of existing cost reduction programmes totalling €65 million are included in this amount.  Heineken does not expect organic growth in Net Profit for 2006 to exceed mid-single digits