Heineken N.V. purchases €1 billion in shares from FEMSA

Key highlights

HEINEKEN has today purchased 7,782,100 shares in HEINEKEN at a price of €91 per share (totaling EUR 708 million) and 3,891,050 shares in Heineken Holding N.V. at a price of €75 per share (totaling EUR 292 million) for an aggregate amount of €1 billion.

The purchase is part of the accelerated bookbuild offering by FEMSA of €1.9 billion in shares in HEINEKEN and €1.3 billion in shares in Heineken Holding N.V. at the same prices per share, which was successfully completed today. FEMSA also placed exchangeable bonds for an amount of €500 million exchangeable into Heineken Holding N.V. shares. Together, the equity offering and the issued exchangeable bonds (in which HEINEKEN did not participate) represent over half of FEMSA’s economic interest in HEINEKEN. As of the settlement date, the remaining shares in HEINEKEN and Heineken Holding N.V. held by FEMSA will be subject to a lock-up period of 90 days.

HEINEKEN’s share purchase will be earnings-per-share accretive to the effect of c.2% excluding financing expenses or c.1% assuming the purchase is financed fully at the average interest rate expected for 2023 (3.1%). The impact on its net debt / EBITDA (beia) will be approximately 0.15x. For the foreseeble future, HEINEKEN intends to keep the purchased HEINEKEN shares in treasury and the purchased Heineken Holding N.V. shares on its balance sheet. For further details on the accounting and dividend treatment, please refer to our press release of 19:26 CET on 16 February, 2023.

CEO statement

Dolf van den Brink, CEO and Chairman of the Executive Board, commented: “Participation in this equity offering through the purchase of HEINEKEN and Heineken Holding N.V. shares represents a unique investment opportunity and reflects our confidence in the EverGreen strategy, which continues to gain momentum. Our strong balance sheet allows us to take advantage of this opportunity. This does not change our capital allocation principles, which prioritise investment in the organic growth and expansion of our business, whilst abiding by our long-term target net debt/EBITDA (beia) ratio of below 2.5x.”

Credit Suisse International and Citigroup Global Markets Europe AG are acting as financial advisors to Heineken N.V. De Brauw Blackstone Westbroek is acting as our legal advisor.

Conference call

On 17 February at 13:00 CET we will hold a brief conference call with Harold van den Broek, CFO and Member of the Executive Board. Details will be shared on the Investor Relations page of the Heineken Company website: https://www.theheinekencompany.com/investors

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Press enquiries Sarah Backhouse / Michael FuchsE-mail: pressoffice@heineken.com Tel: +31-20-5239-355

Investor and analyst enquiriesFederico Castillo Martinez / Mark Matthews / Chris SteynE-mail: investors@heineken.comTel: +31-20-5239-590

About HEINEKEN

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 85,000 employees, we brew the joy of true togetherness to inspire a better world. Our dream is to shape the future of beer and beyond to win the hearts of consumers. We are 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. We operate breweries, malteries, cider plants and other production facilities in more than 70 countries. Most recent information is available on our Company's website and follow us on LinkedIn, Twitter and Instagram.

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