MEDIA RELEASE

Heineken N.V. reports 2015 half year results

Continued organic revenue and profit growth

Amsterdam, 3 August 2015 – Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today announced:

Group revenue +2.0% organically with group revenue per hectolitre up 1.1%
Group beer volume +1.0% driven by Americas, Asia Pacific and Africa Middle East
Heineken® volume in premium segment +4.7% with growth across most regions
Innovation rate of 8.6%, contributing €854 million of revenues
Group operating profit (beia) +4.7% organically
Consolidated operating profit (beia) +3.4% organically
Net profit (beia) of €915 million, up 14% organically
Diluted EPS (beia) of €1.59 (2014:€1.34)

CEO STATEMENT

Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented:

"These solid results are in line with our expectations and demonstrate the further progress we have made in delivering on our strategy. Despite strong prior year comparatives and challenging conditions in a number of markets, we saw positive top line and profit growth. Heineken® volume in the premium segment grew a further 4.7%, outperforming the total beer market. This continued positive momentum reflects the benefit from our exposure to high growth markets, a sustained focus on marketing and innovation, and the ability to drive efficiencies throughout the business. Our emphasis on innovation delivered €854 million in revenues. Whilst economic conditions and the pricing environment in certain key markets remain challenging, we are confident of continued progress and our full year expectations are unchanged."

FINANCIAL SUMMARY

Key financials1	HY15	HY14	Total	Organic
(in mhl or € million unless otherwise stated)			growth	growth
			%	%
Group revenue	10,926	10,196	7.2	2.0
Group revenue/ hl (in €)	95	90	5.7	1.1
Group operating profit (beia)	1,690	1,560	8.3	4.7
Group operating profit (beia) margin	15.5%	15.3%	20bps
Consolidated revenue	9,896	9,274	6.7	1.9
Consolidated operating profit (beia)	1,549	1,454	6.5	3.4
Consolidated operating profit (beia) margin	15.7%	15.7%	0bps
Net profit (beia)	915	772	19	14
Net profit	1,144	631	81
Diluted EPS (beia) (in €)	1.59	1.34	19
Free operating cash flow	486	571
Net debt/ EBITDA (beia)2	2.4	2.5

¹ Refer to the Glossary section for an explanation of non-IFRS measures and other terms used throughout this report

² Includes acquisitions and excludes disposals on a 12 month pro-forma basis

OUTLOOK STATEMENT

(Based on consolidated reporting) Aside from an adjustment for capital expenditure guidance HEINEKEN reaffirms all elements of its 2015 outlook, as stated in its FY 2014 release dated 11 February 2015.

In 2015 HEINEKEN expects a continued challenging external environment, however, delivering on strategic priorities is expected to drive further organic revenue and profit growth.

Continued revenue growth: HEINEKEN expects positive organic revenue growth in 2015 with volume growth at a more moderate level than 2014, and weighted towards H2 (tougher comparatives in H1). Continued volume growth in developing markets will offset more subdued volume growth elsewhere. Revenue per hectolitre is expected to increase driven by revenue management. Pricing will be limited by deflationary and off premise pressure in some markets.

Increased commercial investment: HEINEKEN will continue its targeted higher commercial investments across the regions, and expects a slight increase in marketing and selling (beia) spend as a percentage of revenue in 2015 (2014: 12.7%).

Continued cost savings: HEINEKEN is committed to delivering further cost savings and will continue its focus on driving cost efficiencies across the company. These are an important driver of the medium term margin guidance. As a result of ongoing productivity initiatives, HEINEKEN expects an organic decline in the total number of employees in 2015. Input cost prices are expected to be slightly lower in 2015 (excluding a foreign currency transactional effect).

Further margin expansion: HEINEKEN continues to target a year on year improvement in consolidated operating profit (beia) margin of around 40bps in the medium term. This will continue to be supported by tight cost management, effective revenue management and the anticipated faster growth of higher margin developing markets. In 2015 consolidated operating profit (beia) margin will be adversely impacted by approximately 25bps from the disposal of EMPAQUE, the Mexican packaging business, which completed in February. HEINEKEN expects to partially but not fully offset this, such that in 2015 consolidated operating profit (beia) margin expansion will be somewhat below the 40bps medium term level.

Foreign currency movements: Assuming spot rates as of 29 July 2015 there is no material change in the calculated positive 2015 currency translational impact compared to prior guidance. As such consolidated operating profit (beia) impact is expected to be approximately €130 million, and €80 million at net profit (beia). However the foreign exchange markets remain very volatile.

Improved financial flexibility: HEINEKEN remains focused on cash flow generation and disciplined working capital management, with a commitment to a long-term target net debt/EBITDA (beia) ratio of below 2.5x. In 2015, capital expenditure related to property, plant and equipment is now expected to be approximately €1.7 billion (2014: €1.5 billion), with the €100 million increase from the prior guidance due to foreign exchange. A cash conversion ratio of below 100% is expected in 2015 (2014: 79%).

Effective tax rate: HEINEKEN expects the effective tax rate (beia) for 2015 to be broadly in line with 2014 (29.7%).

Interest rate: HEINEKEN forecasts an average interest rate of c.3.7% in 2015.

GROUP OPERATIONAL REVIEW

The second quarter saw volume growth, although more moderate than in the prior year. This was in line with our expectations given the particularly strong comparatives in the same period last year. Revenue per hectolitre improved despite limited pricing particularly in Western Europe, and driven by a strong focus on revenue management. Innovation continued to play an important role in HEINEKEN's progress contributing revenues of €854 million in the first half. The organisational changes announced on 31 March 2015 will allow HEINEKEN to better focus on growth opportunities, to be more agile in responding to consumer needs in the marketplace, and to be more cost effective in doing so.

HEINEKEN continues to invest in key developing growth markets. During the first half of the year the company announced capacity expansion plans in Mexico and Ethiopia, and opened a new brewery in Myanmar in July.

Group revenue increased 2.0% organically, comprising of a 0.9% increase in group total volume and a 1.1% increase in group revenue per hectolitre. Adjusting for negative country mix, revenue per hectolitre would have been up 1.7%. In the second quarter group revenue grew 1.8% on an organic basis with revenue per hectolitre up 1.6%, and up 2.1% adjusting for negative country mix.

Group beer volumes (in mhl)	2Q15	2Q14	Organic growth %	HY15	HY14	Organic growth %
Heineken N.V.	55.0	54.6	0.1	98.2	96.6	1.0
Africa Middle East	7.8	7.5	3.7	14.8	14.3	2.8
Americas	14.9	14.8	1.7	28.5	27.6	3.6
Asia Pacific	6.4	6.1	4.2	12.0	11.3	6.1
Central & Eastern Europe	13.9	13.7	-1.7	22.7	22.7	-2.0
Western Europe	12.0	12.4	-3.9	20.2	20.8	-3.0

Group beer volume grew 1.0% organically in the first half of the year. As expected group beer volume growth was more moderate in the second quarter, up 0.1%. Comparatives in the prior year period benefited from favourable weather, particularly in Western Europe, and the football World Cup. Volume in the second quarter also included a negative impact from the earlier timing of Easter. HEINEKEN saw market share gains in several of its key markets including Vietnam, the Netherlands, Poland, the US, and Brazil.

Heineken® volume (in mhl)	2Q15	Organic growth %	HY15	Organic growth %
Heineken® volume in premium segment	8.2	3.4	14.9	4.7
Africa Middle East	0.9	7.9	1.9	8.6
Americas	2.3	2.6	4.5	5.1
Asia Pacific	1.6	5.3	3.1	7.4
Central & Eastern Europe	0.8	0.1	1.2	-2.1
Western Europe	2.6	2.6	4.2	2.6

MEDIA RELEASE

Heineken® volume in the premium segment grew 4.7%, with positive performances in almost all regions. In particular, Heineken® volume saw double-digit volume growth in China, Brazil, Vietnam, Spain and Compañía Cervecerías Unidas S.A. (CCU) markets. The brand was also strong in key markets such as France, South Africa, the UK and Taiwan. These results more than offset weaker volume in Central and Eastern Europe driven by economic uncertainties in Greece and Russia. Heineken® benefited from the successful campaign to support the UEFA Champions League football sponsorship. This campaign was activated in 109 markets globally through digital innovation, special edition bottles, and the Global TV campaign combined with local winning top spins, both awarded at Cannes. The second half of the year has an exciting pipeline of campaigns to come including partnering the James Bond movie, sponsorship of the Rugby World Cup, the continuation of the Cities campaign, and Festive programmes.

The first half of the year saw double digit volume growth of the global brands Desperados, Affligem and Sol Premium, reflecting the continued focus and success of the broader premium portfolio strategy. Desperados, the high margin tequila-flavoured beer, saw particularly strong performance in Poland, France and Spain. Affligem, the Belgian abbey beer brand, saw strong growth in Western Europe. CCU markets and Brazil were the key drivers of Sol Premium, the Mexican beer, volume growth.

Cider volume declined slightly, with the positive volume growth seen in the first quarter offset by weaker volumes in the second quarter in mainstream cider in the UK. However, the second quarter saw particularly strong double digit volume growth in Americas, and positive encouraging volume growth in Ireland and 10 new markets in Central and Eastern Europe. In Americas, the US, Canada and Mexico were the key drivers of growth. Innovations in the UK including Strongbow Cloudy Apple and Bulmers Zesty Blood Orange underpinned our leading position in the home base of cider.

HEINEKEN's focus on innovation delivered €854 million in revenue and the innovation rate increased to 8.6% (2014: 7.4%). The company continues to introduce both global and local brand and packaging innovations across multiple markets leveraging its worldwide scale. Key themes which remain a focus are addressing moderation, and improving the quality of the draft offer. 'Radler' beers continued their strong performance, and the 0.0% variant combined with new flavours continues to gain momentum with consumers. THE SUB®, the draught beer appliance, is showing positive signs and will be launched in China, its fifth market, this month. Brewlock, the on premise dispense system, is showing positive signs in the US. With a solid pipeline for the remainder of the year, further strong innovation momentum is expected.

Group operating profit (beia) grew 4.7% organically, primarily reflecting higher revenues and improved cost efficiencies partly offset by higher planned marketing and selling expenses.

INTERIM DIVIDEND

In accordance with the existing dividend policy, HEINEKEN fixes its interim dividend at 40% of the total dividend of the previous year. As a result, an interim dividend of €0.44 per share of €1.60 nominal value will be paid on 12 August 2015. The shares will trade exdividend on 5 August 2015.

MEDIA RELEASE

Enquiries

John Clarke Sonya Ghobrial Director of Group Communication Director of Investor Relations Christine van Waveren Marc Kanter / Gabriela Malczynska Corporate & Financial Communication Manager Investor Relations Manager / Analyst E-mail: [email protected] E-mail: [email protected] Tel: +31(0) 20 523 9355 Tel: +31(0) 20 523 9590

Media Investors

Investor Calendar Heineken N.V.

What's Brewing Seminar, London 27 August 2015 Trading update for Q3 2015 28 October 2015 What's Brewing Seminar, New York 19 November 2015 Full Year 2015 Results 10 February 2016

Conference call details

HEINEKEN will host an analyst and investor conference call in relation to this trading update today at 10:00 CET/ 9:00 BST. The call will be audio cast live via the company's website: www.theheinekencompany.com/investors/webcasts. 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:

Netherlands United Kingdom Local line: +31(0)20 716 8256 Local line: +44 (0) 20 3427 1900

United States of America Local line: +1 646 254 3361 National free phone: 1 877 280 2296

National free phone: 0800 020 2577 National free phone: 0800 279 4841

Participation/ confirmation code for all countries: 2083527

Editorial information:

HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ 81,000 people and operate more than 160 breweries in 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us via @HEINEKENCorp.

Disclaimer:

This press release contains forward-looking statements with regard to the financial position and results of HEINEKEN's activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed 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 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, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, 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 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

REGIONAL OVERVIEW

Revenue		Consolidated		Group
(in € million)	HY15	HY14	Organic growth %	HY15	HY14	Organic growth %
Heineken N.V.	9,896	9,274	1.9	10,926	10,196	2.0
Africa Middle East	1,382	1,293	1.4	1,621	1,496
Americas	2,522	2,213	5.8	2,980	2,578
Asia Pacific	1,172	932	7.4	1,353	1,112
Central & Eastern Europe	1,428	1,427	1.0	1,580	1,601
Western Europe	3,724	3,650	-0.8	3,724	3,650
Head Office & Eliminations	-332	-241	na	-332	-241

Operating Profit (beia)		Consolidated		Group
(in € million)	HY15	HY14	Organic growth %	HY15	HY14	Organic growth %
Heineken N.V.	1,549	1,454	3.4	1,690	1,560	4.7
Africa Middle East	314	338	-7.2	352	358
Americas	413	375	8.6	479	427
Asia Pacific	302	235	9.3	328	259
Central & Eastern Europe	140	115	15	151	126
Western Europe	372	372	0.2	372	372
Head Office & Eliminations	8	19	na	8	19

Developing markets	HY15
(in mhl or € million unless otherwise	Group beer	Group	Group operating
stated)	volume	Revenue1	profit (beia)2
Developing markets in:	63.0	5,572	1,082
Africa Middle East	13.5	1,510
Latin America & the Caribbean	23.0	2,128
Asia Pacific	10.4	1,023
Europe	16.1	884
% of Group	64%	51%	64%
Organic growth %	3.0%	5.0%	9.7%

1 Head Office & Eliminations Group Revenue amounted to €27m

2 Excludes Head Office & Eliminations

On 31 March 2015 HEINEKEN announced organisational changes to accelerate strategy delivery, including the regrouping of the business around 4 regions. The new structure is operational from 1 July 2015. The Trading update for Q3 2015, scheduled on 28 October, will reflect the new regional structure. Restated figures for the prior year and 2015 first half performance will be provided ahead of this in September.

Africa Middle East

Key Financials		Consolidated			Group
(in mhl or € million unless otherwise stated)	HY15	HY14	Total growth	Organic growth	HY15	HY14	Total growth	Organic growth
			%	%			%	%
Revenue	1,382	1,293	6.9	1.4	1,621	1,496	8.4
Revenue/ hl (in €)*	86	83	4.4	-1.1	86	82	5.9
Operating profit (beia)	314	338	-7.0	-7.2	352	358	-1.5
Operating profit (beia) margin	22.7%	26.1%	-340bps		21.7%	23.9%	-220bps
Total volume	16.0	15.6	2.5	2.5	18.8	18.3	2.4	2.4
Beer volume	12.8	12.4	2.6	2.6	14.8	14.3	2.8	2.8
Licensed & non-beer volume	3.2	3.2	2.0	2.0	3.9	3.9	1.3	1.3

* Revenue per hectolitre of attributable share of joint ventures & associates in Africa Middle East has been corrected versus release on 22 April 2015

Consolidated revenue grew 1.4% organically driven by positive total volume growth of 2.5%. This was partly offset by lower revenue per hectolitre of 1.1%, primarily reflecting the impact of higher volume growth in the lower revenue per hectolitre countries. Consolidated operating profit (beia) declined by 7.2%, on an organic basis, driven by margin pressure in Nigeria from negative mix as a result of the continued volume growth in the value for money segment, currency devaluation and increased inflation. Weaker performance in the Democratic Republic of Congo and Egypt also weighed on the region's profit.

Group beer volume increased 2.8% for the half year organically driven by strong volume growth in Ethiopia, in Exports and in South Africa. Elsewhere growth varied, with solid volume performance in Cameroon, Rwanda and Tunisia, partially offset by declining volumes in Nigeria, the Democratic Republic of Congo and Egypt.

Nigeria saw a continued challenging trading environment largely a result of weaker consumer confidence due to falling global oil prices. However, after a high single digit volume decline in the first quarter trends improved in the second quarter, where they were up in the low single digit. For the half year volumes were down in the low single digit with some slight market share loss. Results were also adversely impacted by the further devaluation of the Naira, high inflation and fuel scarcity. The performances of the 33 Export and Goldberg brands remain very strong, with the value for money volume growth continuing to outpace the mainstream and premium beer segments.

Volume more than doubled in Ethiopia, with the key brands Bedele and Walia driving growth. HEINEKEN opened its third brewery in Addis Ababa last July 2014, and intends to add additional production capacity to capture increased beer demand in the market.

Volume in Egypt declined double digit in the first half of the year, with Q2 trading adversely impacted by last year's excise duties increase and the timing of Ramadan.

Despite a challenging beer market, volume of the brandhouse joint venture in South Africa grew in the mid single digit supported by healthy growth of the Heineken® and Amstel brands.

Americas

Key Financials		Consolidated			Group
(in mhl or € million unless	HY15	HY14	Total	Organic	HY15	HY14	Total	Organic
otherwise stated)			growth	growth			growth	growth
			%	%			%	%
Revenue	2,522	2,213	14	5.8	2,980	2,578	16
Revenue/ hl (in €)	93	84	11	2.8	95	85	12
Operating profit (beia)	413	375	10	8.6	479	427	12
Operating profit (beia) margin	16.4%	16.9%	-50bps		16.1%	16.6%	-50bps
Total volume	27.2	26.4	3.0	3.1	31.1	30.1	3.5	3.7
Beer volume	26.5	25.8	3.0	3.2	28.5	27.6	3.5	3.6
Licensed & non-beer volume	0.6	0.5	1.4	1.4	2.5	2.4	4.7	4.7

Consolidated revenue grew 5.8% organically driven by total volume growth of 3.1% and higher revenue per hectolitre of 2.8% reflecting positive brand mix and improved pricing. Currency movements favourably impacted revenues, mainly due to US dollar appreciation and the Mexican peso.

Consolidated operating profit (beia) grew 8.6% organically driven by continued strong growth primarily in Mexico and Brazil.

Group beer volume grew 3.6% organically despite cycling the football World Cup, and with all key markets contributing.

Volumes in Mexico were up in in the low single digit in the first half, benefitting from effective marketing programmes, strong sales execution and successful activation in all key channels. Easter timing combined with increased competitor price promotion resulted in more subdued volumes in the second quarter. Dos Equis continues to be a key growth driver, with volume up double digit, and Tecate brand volume growth in the mid-single digit. Higher pricing, continued cost savings, and mix all contributed to profit growth and further margin expansion.

In the US sales to retailers grew by 0.2% and sales to wholesalers were up 1.1%, outperforming the overall market. The portfolio strategy continues to be successful and drive overall performance. Dos Equis and Tecate Light remain important growth drivers, despite the adverse impact of weather in key markets in the second quarter. Heineken® continues to show positive share momentum.

In Brazil beer volume grew in mid-single digit, despite flat volumes in the second quarter largely driven by the football World Cup comparatives. Revenue per hectolitre was up double digit reflecting the continued mix benefit from a growing premium portfolio. Heineken® brand grew double digit, with other global brands such as Sol Premium and Desperados also growing strongly.

Asia Pacific

Key Financials		Consolidated			Group
(in mhl or € million unless otherwise stated)	HY15	HY14	Total growth %	Organic growth %	HY15	HY14	Total growth %	Organic growth %
Revenue	1,172	932	26	7.4	1,353	1,112	22
Revenue/ hl (in €)	126	108	16	-1.1	110	96	14
Operating profit (beia)	302	235	28	9.3	328	259	26
Operating profit (beia) margin	25.8%	25.2%	60bps		24.2%	23.3%	90bps
Total volume	9.3	8.5	8.5	8.5	12.3	11.5	6.2	6.2
Beer volume	9.1	8.3	8.5	8.5	12.0	11.3	6.2	6.1

Consolidated revenue in the Asia Pacific region grew 7.4% organically, with higher total volume growth of 8.5% organically and revenue per hectolitre down 1.1% negatively impacted by country mix. Excluding adverse country mix, revenue per hectolitre would have been up 3.4%.

Consolidated operating profit (beia) increased 9.3% organically reflecting increased profitability in Vietnam, China, New Zealand, Mongolia and Sri Lanka.

Group beer volume grew 6.1% in the first half of the year, with strong volume growth in Vietnam, Cambodia, China and Export markets (notably Korea and Taiwan). Indonesia continued to adversely impact the overall regional volume.

Double digit volume growth in Vietnam was maintained through the second quarter, particularly driven by the strong performance of the Tiger brand. Improved consumer confidence, combined with the success of the portfolio strategy and successful commercial execution were the key drivers of this growth.

In China, volume grew by mid-single digit, with double digit Heineken® volume growth supported by both expanded outlet coverage and successful commercial initiatives.

Indonesian volumes were down double digit, and these remain under pressure. Volume trends in the second quarter were similar to those in the first quarter, as a consequence of the implementation in April of the new regulation banning the sale of alcoholic beverages in minimarts (convenience stores). High inflation and a softer consumer backdrop were additional factors which negatively impacted volumes.

Volume in Cambodia was up double digit for the first half, boosted by successful portfolio strategy implementation.

Volume in India in the second quarter was slightly down across all major states, with stable market share.

Central & Eastern Europe

Key Financials		Consolidated			Group
(in mhl or € million unless otherwise stated)	HY15	HY14	Total growth %	Organic growth %	HY15	HY14	Total growth %	Organic growth %
Revenue	1,428	1,427	0.1	1.0	1,580	1,601	-1.3
Revenue/ hl (in €)	63	65	-2.2	2.7	65	66	-1.6
Operating profit (beia)	140	115	21	15	151	126	20
Operating profit (beia) margin	9.8%	8.1%	170bps		9.6%	7.9%	170bps
Total volume	22.4	22.0	1.8	-2.2	24.4	24.4	-0.1	-2.1
Beer volume	21.3	20.8	2.2	-2.0	22.7	22.7	0.1	-2.0

Consolidated revenue increased by 1.0% organically, with revenue per hectolitre growth of 2.7%. This was only partially offset by lower consolidated total volume of 2.2%. Adverse foreign currency movements, mainly the Russian rouble, negatively impacted reported revenues by €69 million. Consolidated operating profit (beia) increased by 15% organically, as the value growth strategy focused on improving revenue per hectolitre and profitability across the region delivered results. Improved profitability in Russia, Poland and Romania was more than offset by weaker performance in Greece, Slovakia and Croatia.

Group beer volume declined by 2.0% in the first half of the year, with slightly improved volume in the second quarter, a result of improved weather conditions despite a continued challenging economic backdrop. Higher volume in Poland, Serbia and Romania was more than offset by lower volume in Russia, Belarus, Germany and Greece. Excluding Russia group beer volume would have been up 0.4%.

In Russia continued challenging macro-economic conditions and low consumer confidence continue to weigh on the overall beer market. Volume in Russia declined double digit in the first half of the year. Nonetheless, innovation, improved product mix and revenue management activities contributed positively to revenue development and results. Premium brands Heineken®, Amstel Premium Pilsner and Krusovice continue to outperform the overall market.

Volume in Poland increased in the high single digit, continuing to benefit from the relisting by an important modern trade customer, resulting in market share gains. The underlying market remains difficult and continues to be impacted adversely by negative channel mix. Premium brands including Zywiec, Heineken® and Desperados were key drivers of volume growth.

Volume in Austria was down in the low single digit because of favourable weather conditions and higher promotional intensity in the off trade in the second quarter last year.

Volume in Greece declined in the mid-single digit in the context of both a challenging market and soft consumer backdrop. The Alfa brand continues to grow strongly.

Western Europe

Key Financials	Consolidated & Group
(in mhl or € million unless	HY15	HY14	Total	Organic
otherwise stated)			growth	growth
			%	%
Revenue	3,724	3,650	2.0	-0.8
Revenue/ hl (in €)	119	115	3.4	0.5
Operating profit (beia)	372	372	-0.1	0.2
Operating profit (beia) margin	10.0%	10.2%	-20bps
Total volume	28.1	28.7	-2.2	-2.4
Beer volume	20.2	20.8	-2.9	-3.0
Licensed & non-beer volume	4.4	4.3	-1.0	-1.0
Third party products volume	3.5	3.6	-0.2	-0.3

Consolidated revenue declined by 0.8% organically driven by a total volume decline of 2.4%, which was only partly offset by higher revenue per hectoliter of 0.5%. Positive growth in revenue per hectolitre was achieved despite the deflationary pressure in some key markets and off trade pricing pressure.

On an organic basis, consolidated operating profit (beia) grew by 0.2% led by higher profit in Spain, Portugal and the Netherlands, and offset by lower profitability in the UK.

Group beer volume declined by 3.0% in the first half of the year, reflecting challenging market conditions in some countries, and tough prior year comparables. Results in the same period in the prior year benefited from favourable weather conditions and a positive impact from the football World Cup. The loss of export volume from Portugal to Angola and the volume decline in the UK adversely impacted regional volume. Positive volume growth was seen in Spain, France and the Netherlands.

Volume in the UK declined in the high-single digit due to challenging market conditions, and promotional pressures. Prior year comparatives were particularly demanding given favourable weather and the football World Cup. During the period the successful launches of new flavour variants under the Strongbow and Bulmers brands performed well. Within the beer portfolio Heineken® and Amstel saw solid volume growth.

Volume in France grew in the low single digit, with similar trends seen across both quarters. The pricing environment remains challenging given pressure from collective buying groups. Despite this, premium brands Heineken®, Desperados and Affligem saw positive volume growth.

Volume in Spain increased in the low single digit supported by an improvement in the underlying economic environment conditions, and improved consumer confidence. Volumes were supported by on trade growth, underpinned by new outlet openings. Double digit Heineken® brand growth, was complemented by successful innovations.

In the Netherlands volumes were up in the low single digit ahead of the overall market. This reflected continued strengthened commercial execution, combined with slightly better market conditions. Growth in the Heineken® brand and Brand® performance resulted in strong portfolio performance.

Head office costs, other items and eliminations

Key Financials	Consolidated & Group
(in mhl or € million unless otherwise stated)	HY15	HY14
Revenue	-332	-241
Operating profit (beia)	8	19

Consolidated operating profit (beia) decreased in the first half of the year. This is primarily related to the disposal of the Mexican packaging business EMPAQUE. The sale of EMPAQUE completed on 18 February 2015.

CONSOLIDATED FINANCIAL REVIEW

Key figures	Consolidated
(in mhl or € million unless otherwise stated)	HY14	Currency translation	Consolidation impact	Organic growth	HY15	Organic growth %
Revenue (beia)	9,274	469	-20	173	9,896	1.9
Total expenses (beia)	-7,820	-395	-9	-123	-8,347	-1.6
Operating profit (beia)	1,454	74	-29	50	1,549	3.4
Share of net profit of assoc./ JVs (beia)	57	9	-4	23	85	40
EBIT (beia)	1,511	83	-33	73	1,634	4.8
Net interest income/(expenses) (beia)	-209	-3	1	44	-167	21
Other net finance income/(expenses) (beia)	-38	-1	-	3	-36	8.4
Income tax expense (beia)	-380	-17	8	-1	-390	-0.2
Minority interests (beia)	-112	-10	4	-8	-126	-7.0
Net profit (beia)	772	52	-20	111	915	14
Eia	-141				229
Net profit	631				1,144

Changes in consolidation

The main items included as consolidation changes are:

The divestiture of an 80% shareholding in Brasserie Lorraine in Martinique on 10 September 2014. HEINEKEN retains a 20% shareholding in the business.
The acquisition of the indirect shareholding of Coca-Cola HBC in Zagorka AD, the Bulgarian brewer, which increased HEINEKEN's ownership to a controlling stake of 98.86%. The transaction completed on 27 October 2014.
The disposal of the Mexican packaging business EMPAQUE completed on 18 February 2015 for the value of USD1.225 billion (€956 million).

In the second half of the year the following items will impact consolidation changes and HEINEKEN reported results:

The acquisition of 51.11% of the share capital of Pivovarna Lasko, the leading Slovenian brewer for €114.3 million was announced on 13 April 2015. Completion of the acquisition is subject to customary regulatory approvals and will be followed by a mandatory takeover offer extended to all remaining shareholders.

On 23 July 2015, Group Żywiec signed with Orbico Group a conditional agreement upon which Orbico Group will purchase 80% of the shares in Distribev Sp. z o.o (Group Żywiec's recently established sales and distribution company serving the traditional trade and horeca market). The enterprise value for an 80% stake amounted to PLN 96 million (€23 million), and is subject to customary price adjustments. Closing is subject to regulatory approval and is expected in the second half of this year.
On 27 July 2015 HEINEKEN announced that along with Diageo plc and The Ohlthaver & List (O&L) Group of Companies, the majority shareholder of Namibia Breweries Limited ('NBL'), that they have agreed to restructure their respective joint venture operations in South Africa and Namibia. The agreement will result in HEINEKEN, Diageo and NBL closing their distribution joint venture, brandhouse Beverages (Pty) Ltd. HEINEKEN will pay a total net cash consideration of c.ZAR 1.9 billion (c. €136 million) to Diageo. Completion of the transaction is expected in Q4 2015 and is subject to customary regulatory approvals.

Revenue

Revenue increased by 6.7% to €9,896 million and benefitting from a favourable currency impact of 5.0% (€469 million), largely driven by movements in the Mexican peso, US dollar, Vietnamese dong and the British pound. This combined with organic growth more than offset the negative consolidation impact (-€20 million), primarily from the sale of EMPAQUE. An organic revenue increase of 1.9% comprised of total consolidated volume growth of 0.8%, and a 1.1% increase in revenue per hectolitre (net of an adverse country mix effect of 0.6%).

Total expenses (beia)

Total expenses (beia) were €8,347 million, up by 1.6% organically. Currency increased reported total expenses beia by €395 million. On an organic basis, input costs increased by 0.5% and decreased by 0.3% on a per hectolitre basis. On an organic basis, energy and water expenses declined by 4.9 %. Marketing and selling (beia) expenses increased organically by 2.8% to €1,373 million, representing 13.9% of revenues (2014: 13.4%). Personnel expenses increased organically by 3.4% to €1,601 million.

Operating profit (beia)

Operating profit (beia) grew by 6.5% to €1,549 million, with a €74 million benefit from favourable foreign currency, largely due to the appreciation of the Vietnamese dong (+20%), the Mexican Peso (+6%), and the British pound (+12%). This combined with organic growth more than offset a negative net consolidation impact of 2.0% (-€29 million). On an organic basis, operating profit (beia) grew by 3.4% as higher revenue and the benefit of realised cost savings was only partially offset by higher marketing and selling expenses.

Share of net profit of associates and joint ventures (beia)

Share of net profit of associates and joint ventures (beia) increased from €57 million to €85 million. On an organic basis, an increase of €23 million reflected a higher share of net profit mainly from the joint venture operations in South Africa.

Net finance expenses (beia)

Net interest expenses (beia) decreased by €42 million to €167 million, reflecting a lower average effective interest rate on outstanding debts. The average interest rate in the first half of 2015 was 3.2% (2014: 4.0%).

Other net finance expenses (beia) amounted to €36 million, which includes €22 million interest expense on the net pension liability. On an organic basis, other net finance expenses decreased by €3 million.

Income tax expense (beia)

The effective tax rate (beia) in the first half of 2015 was 28.9% (2014: 31.5%). The decrease of the effective rate last year is explained by a number of one-off tax benefits reported in the first half of 2015.

Net profit and net profit (beia)

Net profit increased by €513 million to €1,144 million. This included a benefit from the combination of a net exceptional gain (EMPAQUE), which combined with amortisation added €229 million (2014: -€141 million). Further details on exceptional items and amortisation is provided in note 8 of the 'Condensed consolidated interim financial statements'.

Net profit (beia) grew by €143 million to €915 million, an organic increase of 14%. Favourable currency increased this by €52 million, and there was a negative impact from consolidation of €20 million.

US dollar Transactional Hedging

HEINEKEN delays the impact of the US dollar fluctuations versus the Euro by hedging the net cash inflow of US dollars from Dutch exports for up to 18 months.

The average EUR/USD exchange rate inclusive of hedging was 1.32 in the first half of 2015, versus 1.30 last year in the same period. For the full year 2015, the net dollar inflow is forecasted at USD527 million, of which 96% has been hedged at EUR/USD 1.33 (2014: 1.31). For 2016, the net dollar inflow is forecasted at approximately USD495 million of which 79% is hedged at EUR/USD 1.17 as of 29 July 2015.

Capital expenditure and cash flow

Capital expenditure related to property, plant and equipment amounted to €602 million in the first half of 2015 (2014: €549 million) representing 6.1% of revenues.

Free operating cash flow amounted to €486 million (2014: €571 million), this was lower than last year partly due to a higher level of capital expenditure in the period.

Financial structure

Total gross debt amounts to €11,440 million (from €11,757 million at 31 December 2014). Net debt decreased to €10,591 million (from €11,076 million at 31 December 2014) as the positive FOCF and proceeds of the EMPAQUE divestment exceeded dividends paid, share buyback and foreign currency movements.

The pro forma net debt/EBITDA (beia) ratio was 2.4 times on 30 June 2015 (2014: 2.5x). Including the effect of cross-currency swaps, 54% of net debt is Euro-denominated and 33% is US dollar-denominated.

Average number of shares

HEINEKEN has 576,002,613 shares in issue. In the calculation of basic EPS, the weighted average number of shares outstanding in the first half of 2015 was 574,510,552. In the calculation of diluted EPS, shares to be delivered under the employee incentive programme are added to the weighted average shares outstanding. The weighted average diluted number of shares outstanding in the first half of 2015 was 575,697,335 (576,002,613 at 31 December 2014).

Share buyback update

Following the completion of the divestment of EMPAQUE in February 2015, HEINEKEN announced that it would deploy up to €750 million of the proceeds for a share buyback program in 2015. As of 24 July 2015, HEINEKEN had purchased 4,001,253 shares for a total consideration of €279 million. The program is executed periodically by intermediaries via open market purchases and weekly updates are published on the HEINEKEN website.

RISK PARAGRAPH

The Annual Report 2014 outlines HEINEKEN's main risks and mitigation activities at the time of closing the 2014 financial year. In the Company's view, the nature and potential impact of these risks have not materially changed in the first half of 2015. Reference is made to pages 22 to 27 of the Annual Report 2014 for a detailed description of HEINEKEN's risks and risk control systems.

In the first half of 2015, increased competition in several key markets, pressure from retailers and further diversification of consumers' preferences have sharpened the need for ongoing innovation in order to deliver value growth. Additionally, the persistent pressure on the alcoholic beverage industry and a volatile economic situation across many of its markets could impact HEINEKEN's results and profitability.

In view of the Company's wide geographical spread, ongoing geopolitical uncertainty, together with risks related to social unrest, natural disaster, regulatory changes, credit risk and foreign exchange volatility may also adversely impact its results and remain high on HEINEKEN's risk management agenda.

There may also be current risks the Company is not aware of or currently deems immaterial but which could, at a later stage, have a material impact on the Company's business. The Company's risk management systems are focused on timely discovery of such risks.

Consolidated & Group Metrics: Half year 2015

	Consolidated (A)						Attributable share of joint ventures/assoc (B)		Group (C) = A + B
(in mhl or €million unless otherwise stated)	HY14	Currency Translation	Consolidation Impact	Organic Growth	HY15	Organic Growth %	HY14	HY15	HY14	HY15	Organic Growth %
Africa and Middle East
Revenue	1,293	71	-	19	1,382	1.4	203	239	1,496	1,621	2.5
Revenue per Hl (in €) 1	83			-1	86	-1.1	75	86	82	86	0.1
Operating profit (beia)	338	8	-7	-24	314	-7.2	20	38	358	352	-2.5
Operating profit (beia) margin	26.1%				22.7%		9.9%	15.9%	23.9%	21.7%
Total volume	15.6		-	0.4	16.0	2.5	2.7	2.8	18.3	18.8	2.4
Beer volume	12.4		-	0.3	12.8	2.6	1.9	2.0	14.3	14.8	2.8
Licensed & non-beer volume	3.2		-	0.1	3.2	2.0	0.7	0.7	3.9	3.9	1.3
Third party products volume	-		-	-	-		- 0.1	0.1	0.1	0.1	-12
Americas
Revenue	2,213	185	-4	128	2,522	5.8	365	458	2,578	2,980	6.4
Revenue per Hl (in €) 1	84			2	93	2.8	98	115	85	95	2.7
Operating profit (beia)	375	13	-8	32	413	8.6	52	66	427	479	8.9
Operating profit (beia) margin	16.9%				16.4%		14.2%	14.4%	16.6%	16.1%
Total volume	26.4		-	0.8	27.2	3.1	3.7	3.9	30.1	31.1	3.7
Beer volume	25.8		-	0.8	26.5	3.2	1.8	2.0	27.6	28.5	3.6
Licensed & non-beer volume	0.5		-	-	0.6	1.4	1.9	1.9	2.4	2.5	4.7
Third party products volume	0.1		-	-	0.1	-7.6	-	-	0.1	0.1	-7.6
Asia Pacific
Revenue	932	171	-	69	1,172	7.4	180	181	1,112	1,353	3.9
Revenue per Hl (in €) 1	108			-1	126	-1.1	61	61	96	110	-2.3
Operating profit (beia)	235	44	-	22	302	9.3	24	26	259	328	8.1
Operating profit (beia) margin	25.2%				25.8%		13.3%	14.4%	23.3%	24.2%
Total volume	8.5		-	0.7	9.3	8.5	3.0	3.0	11.5	12.3	6.2
Beer volume	8.3		-	0.7	9.1	8.5	3.0	2.9	11.3	12.0	6.1
Licensed & non-beer volume	0.2		-	-	0.2	15	-	0.1	0.2	0.3	17
Third party products volume	-		-	-	-		- -	-	-	-	-
Central & Eastern Europe
Revenue	1,427	-69	55	14	1,428	1.0	174	152	1,601	1,580	0.8
Revenue per Hl (in €) 1	65			2	63	2.7	73	78	66	65	2.9
Operating profit (beia)	115		-2 9	18	140	15	11	11	126	151	17.4
Operating profit (beia) margin	8.1%				9.8%		6.3%	7.2%	7.9%	9.6%
Total volume	22.0		0.9	-0.5	22.4	-2.2	2.4	2.0	24.4	24.4	-2.1
Beer volume	20.8		0.9	-0.4	21.3	-2.0	1.9	1.4	22.7	22.7	-2.0
Licensed & non-beer volume	0.6		-	-	0.6	7.6	0.3	0.4	0.9	1.0	6.2
Third party products volume	0.6		-	-0.1	0.5	-18	0.2	0.2	0.8	0.7	-12

		Consolidated (A)						Attributable share of joint ventures/assoc (B)	Group (C) = A + B
(in mhl or €million unless otherwise stated)	HY14	Currency Translation	Consolidation Impact	Organic Growth	HY15	Organic Growth %	HY14	HY15	HY14	HY15	Organic Growth %
Western Europe
Revenue	3,650	100	2	-28	3,724	-0.8			3,650	3,724	-0.8
Revenue per Hl (in €) 1	115			1	119	0.5			115	119	1.6
Operating profit (beia)	372	8	-9	1	372	0.2			372	372	0.2
Operating profit (beia) margin	10.2%				10.0%				10.2%	10.0%
Total volume	28.7		-	-0.7	28.1	-2.4			28.7	28.1	-2.4
Beer volume	20.8		-	-0.6	20.2	-3.0			20.8	20.2	-3.0
Licensed & non-beer volume	4.3		-	-0.1	4.4	-1.0			4.3	4.4	-1.0
Third party products volume	3.6		-	-	3.5	-0.3			3.6	3.5	-0.3
Head Office & Eliminations
Revenue	-241	11	-73	-29	-332	n.a.			-241	-332	-12.0
Operating profit (beia)	19	3	-14	1	8	n.a.			19	8	7.1
Heineken N.V.
Revenue	9,274	469	-20	173	9,896	1.9	922	1,030	10,196	10,926	2.0
Revenue per Hl (in €) 1	92			1	96	1.1	78	88	90	95	1.1
Total expenses (beia)	-7,820	-395	-9	-123	-8,347	-1.6	-816	-889	-8,636	-9,236	-1.5
Operating profit (beia)	1,454	74	-29	50	1,549	3.4	106	141	1,560	1,690	4.7
Operating profit (beia) margin	15.7%				15.7%		11.5%	13.7%	15.3%	15.5%
Share of net profit of associates / JVs (beia)	57	9	-4	23	85	40
Net Interest income / (expenses) (beia)	-209	-3	1	44	-167	21
Other net finance income/(expenses) (beia)	-38	-1	-	3	-36	8.4
Income tax expense (beia)	-380	-17	8	-1	-390	-0.2
Minority Interests	-112	-10	4	-8	-126	-7.0
Net profit (beia)	772	52	-20	111	915	14
Total volume	101.3		0.9	0.8	103.0	0.8	11.8	11.7	113.1	114.7	0.9
Beer volume	88.1		0.9	0.8	89.9	0.9	8.5	8.3	96.6	98.2	1.0
Licensed & non-beer volume	8.9		-	0.1	9.0	1.0	3.0	3.1	11.9	12.1	1.7
Third party products volume	4.3		-	-0.1	4.1	-2.8	0.3	0.3	4.6	4.4	-2.9

Consolidated & Group Metrics: First Quarter 2015

			Consolidated (A)				Attributable share of joint ventures/assoc (B)		Group (C) = A + B
(in mhl or €million unless otherwise stated)	1Q14	Currency Translation	Consolidation Impact	Organic Growth	1Q15	Organic Growth %	1Q14	1Q15	1Q14	1Q15	Organic Growth %
Africa and Middle East
Revenue	628	44	-	-7	665	-1.1	93	120	721	785	1.6
Revenue per Hl (in €) 1, 2	84			-2	88	-2.1	74	90	83	88	-0.2
Total volume*	7.5		-	0.1	7.6	1.1	1.3	1.3	8.8	8.9	1.7
Beer volume	6.0		-	0.1	6.1	0.9	0.9	0.9	6.9	7.0	1.8
Licensed & non-beer volume	1.5		-	-	1.5	1.8	0.4	0.4	1.9	1.9	1.8
Third party products volume	-		-	-	-		- -	-	-	-	-
Americas
Revenue	989	95	-1	67	1,150	6.8	183	237	1,172	1,387	7.9
Revenue per Hl (in €) 1	82			2	91	2.2	89	106	83	93	3.0
Total volume*	12.0		-	0.7	12.7	5.4	2.1	2.2	14.1	14.9	5.5
Beer volume	11.7		-	0.7	12.4	5.9	1.0	1.1	12.7	13.5	5.9
Licensed & non-beer volume	0.3		-	-	0.3	-10	1.1	1.1	1.4	1.4	2.2
Third party products volume	-		-	-	-		- -	-	-	-	-
Asia Pacific
Revenue	444	79	-	44	567	9.9	80	67	524	634	4.0
Revenue per Hl (in €) 1	108			1	125	-0.7	64	54	98	110	-3.9
Total volume*	4.1		-	0.4	4.5	11	1.2	1.3	5.3	5.8	8.2
Beer volume Licensed & non-beer volume	4.0 -		- -	0.4 -	4.4 -	11 -0.3	1.2 -	1.2 0.1	5.2 -	5.6 0.1	8.4 3.2
Third party products volume	0.1		-	-	0.1	-0.5	-	-	0.1	0.1	-0.5
Central & Eastern Europe
Revenue	562	-36	13	-4	535	-0.6	72	65	634	600	-0.7
Revenue per Hl (in €) 1	65			2	62	1.9	73	78	66	63	1.8
Total volume*	8.6		0.2	-0.3	8.5	-3.1	1.0	0.8	9.6	9.3	-3.0
Beer volume	8.2		0.2	-0.2	8.2	-2.5	0.8	0.6	9.0	8.8	-2.6
Licensed & non-beer volume	0.1		-	-	0.1	-1.5	0.1	0.1	0.2	0.2	-0.7
Third party products volume	0.3		-	-0.1	0.2	-23	0.1	0.1	0.4	0.3	-16

¹ Revenue per Hl calculation excludes interregional revenue

² Revenue per hectolitre of attributable share of joint ventures & associates in Africa Middle East has been corrected versus release on 22 April 2015

			Consolidated (A)				Attributable share of joint ventures/assoc (B)		Group (C) = A + B
(in mhl or €million unless otherwise stated)	1Q14	Currency Translation	Consolidation Impact	Organic Growth	1Q15	Organic Growth %	1Q14	1Q15	1Q14	1Q15	Organic Growth %
Western Europe
Revenue	1,519	40	-1	-1	1,557	-0.1			1,519	1,557	-0.1
Revenue per Hl (in €) 1	117			-1	119	-0.6			117	119	-0.6
Total volume*	11.7		-	-0.1	11.6	-1.1			11.7	11.6	-1.1
Beer volume	8.3		-	-0.1	8.2	-1.7			8.3	8.2	-1.7
Licensed & non-beer volume	1.9		-	-	1.9	1.9			1.9	1.9	1.9
Third party products volume	1.5		-	-	1.5	-1.0			1.5	1.5	-1.0
Head Office & Eliminations
Revenue	-104		5 -19	-18	-136	n.a.			-104	-136	-19
Heineken N.V.
Revenue	4,038	227	-8	81	4,338	2.0	428	489	4,466	4,827	2.2
Revenue per Hl (in €) 1	92			0.2	97	0.2	77	87	90	96	0.3
Total volume*	43.9		0.3	0.8	45.0	1.8	5.5	5.6	49.4	50.6	1.9
Beer volume	38.2		0.3	0.8	39.3	2.2	3.9	3.8	42.1	43.1	2.2
Licensed & non-beer volume	3.8		-	0.1	3.9	0.7	1.5	1.7	5.3	5.6	1.8
Third party products volume	1.9		-	-0.1	1.8	-4.1	0.1	0.1	2.0	1.9	-4.0

Consolidated & Group Metrics: Second Quarter 2015

			Consolidated (A)				Attributable share of joint ventures/assoc (B)		Group (C) = A + B
(in mhl or €million unless otherwise stated)	2Q14	Currency Translation	Consolidation Impact	Organic Growth	2Q15	Organic Growth %	2Q14	2Q15	2Q14	2Q15	Organic Growth %
Africa and Middle East
Revenue	666	27	-	25	718	3.8	110	118	776	836	3.4
Revenue per Hl (in €) 1	82			-	85	0.1	76	83	81	85	0.5
Total volume	8.1		-	0.3	8.5	3.7	1.5	1.4	9.6	9.9	2.9
Beer volume	6.5		-	0.3	6.7	4.1	1.0	1.1	7.5	7.8	3.7
Licensed & non-beer volume	1.6		-	-	1.8	2.2	0.4	0.2	2.0	2.0	1.0
Third party products volume	-		-	-	-		- 0.1	0.1	0.1	0.1	-14
Americas
Revenue	1,223	89	-3	61	1,371	5.0	182	221	1,405	1,592	5.2
Revenue per Hl (in €) 1	85			3	94	3.2	110	126	87	97	2.7
Total volume	14.4		-	0.2	14.5	1.2	1.7	1.8	16.1	16.3	2.1
Beer volume	14.0		-	0.1	14.1	1.0	0.8	0.8	14.8	14.9	1.7
Licensed & non-beer volume	0.4		-	0.1	0.4	13	0.9	1.0	1.3	1.4	7.4
Third party products volume	-		-	-	-		- -	-	-	-	-
Asia Pacific
Revenue	490	92	-	25	605	5.1	100	114	590	719	3.9
Revenue per Hl (in €) 1	109			-1	126	-1.5	58	67	95	110	-0.5
Total volume	4.4		-	0.3	4.8	6.6	1.7	1.7	6.1	6.5	4.4
Beer volume	4.4		-	0.3	4.7	6.3	1.7	1.7	6.1	6.4	4.2
Licensed & non-beer volume	0.1		-	-	0.1	38	-	-	0.1	0.1	38
Third party products volume	-0.1		-	-	-	-47	-	-	-0.1	-	-48
Central & Eastern Europe
Revenue	864	-33	42	18	892	2.1	102	87	966	979	1.8
Revenue per Hl (in €) 1	65			2	65	3.2	72	77	66	66	2.9
Total volume	13.2		0.6	-0.2	13.7	-1.6	1.4	1.1	14.6	14.8	-1.5
Beer volume	12.6		0.6	-0.2	13.1	-1.7	1.1	0.8	13.7	13.9	-1.7
Licensed & non-beer volume	0.3		-	-	0.4	13	0.2	0.2	0.5	0.6	10
Third party products volume	0.3		-	-	0.2	-12	0.1	0.1	0.4	0.3	-8.4

			Consolidated (A)				Attributable share of joint ventures/assoc (B)		Group (C) = A + B
(in mhl or €million unless otherwise stated)	2Q14	Currency Translation	Consolidation Impact	Organic Growth	2Q15	Organic Growth %	2Q14	2Q15	2Q14	2Q15	Organic Growth %
Western Europe
Revenue	2,131	60	3	-27	2,168	-1.3			2,131	2,168	-1.3
Revenue per Hl (in €) 1	113			1	118	1.2			113	118	1.2
Total volume	17.2		-	-0.6	16.6	-3.3			17.2	16.6	-3.3
Beer volume	12.4		-	-0.5	12.0	-3.9			12.4	12.0	-3.9
Licensed & non-beer volume	2.8		-	-0.1	2.5	-3.0			2.8	2.5	-3.0
Third party products volume	2.0		-	-	2.1	0.2			2.0	2.1	0.2
Head Office & Eliminations
Revenue	-137	7	-54	-10	-196	n.a.			-137	-196	-6.8
Heineken N.V.
Revenue	5,236	242	-12	92	5,558	1.8	494	540	5,730	6,098	1.8
Revenue per Hl (in €) 1	91			2	96	1.8	79	90	90	95	1.6
Total volume	57.4		0.7	-	58.1	-	6.2	6.0	63.6	64.1	0.2
Beer volume	50.0		0.6	-	50.6	-	4.6	4.4	54.6	55.0	0.1
Licensed & non-beer volume	5.1		-	-	5.2	1.2	1.4	1.4	6.5	6.6	1.6
Third party products volume	2.3		-	-	2.3	-1.8	0.2	0.2	2.5	2.5	-2.0

Condensed consolidated interim financial statements for the six-month period ended 30 June 2015

Contents	Page
Condensed consolidated interim income statement	24
Condensed consolidated interim statement of comprehensive income	25
Condensed consolidated interim statement of financial position	26
Condensed consolidated interim statement of cash flows	27
Condensed consolidated interim statement of changes in equity	29
Notes to the condensed consolidated interim financial statements	31
Statement of the Executive Board	42
Review report on condensed consolidated interim financial statements	43
Glossary	44

CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

For the six-month period ended 30 June

In millions of EUR	Note	2015	2014
Revenue	5	9,896	9,274
Other income	5	398	20
Raw materials, consumables and services		(6,201)	(5,795)
Personnel expenses		(1,660)	(1,563)
Amortisation, depreciation and impairments		(735)	(699)
Total expenses		(8,596 )	(8,057 )
Result from operating activities	5	1,698	1,237
Interest income		28	20
Interest expenses		(195)	(229)
Other net finance income/ (expenses)		(36)	(37)
Net finance expenses		(203 )	(246 )
Share of profit of associates and joint ventures and
impairments thereof (net of income tax)	5	83	55
Profit before income tax		1,578	1,046
Income tax expenses		(328)	(325)
Profit		1,250	721
Attributable to:
Equity holders of the Company (net profit)		1,144	631
Non-controlling interests		106	90
Profit		1,250	721
Weighted average number of shares – basic	9	574,510,552	575,071,363
Weighted average number of shares – diluted	9	575,697,335	576,002,613
Basic earnings per share (EUR)		1.99	1.10
Diluted earnings per share (EUR)		1.99	1.10

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six-month period ended 30 June

In millions of EUR	2015	2014
Profit	1,250	721
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Actuarial gains and losses	(97)	(81)
Items that may be subsequently reclassified to profit or loss:
Currency translation differences	613	203
Effective portion of net investment hedges	(17)	(5)
Effective portion of changes in fair value of cash flow hedges	40	(16)
Effective portion of cash flow hedges transferred to profit or loss	5	(14)
Net change in fair value available-for-sale investments	23	(9)
Share of other comprehensive income of associates/joint ventures	8	—
Other comprehensive income, net of tax	575	78
Total comprehensive income	1,825	799
Attributable to:
Equity holders of the Company	1,697	712
Non-controlling interests	128	87
Total comprehensive income	1,825	799

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

As at		30 June	31 December
In millions of EUR	Note	2015	2014
Assets
Property, plant and equipment		8,950	8,718
Intangible assets		16,848	16,341
Investments in associates and joint ventures		1,979	2,033
Other investments and receivables		863	737
Advances to customers		268	254
Deferred tax assets		738	661
Total non-current assets		29,646	28,744
Inventories		1,823	1,634
Other investments		17	13
Trade and other receivables		3,083	2,743
Prepayments and accrued income		394	317
Income tax receivables		28	23
Cash and cash equivalents		832	668
Assets classified as held for sale		116	688
Total current assets		6,293	6,086
Total assets		35,939	34,830
Equity
Share capital		922	922
Share premium		2,701	2,701
Reserves		36	(427)
Retained earnings		9,858	9,213
Equity attributable to equity holders of the Company	9	13,517	12,409
Non-controlling interests		1,000	1,043
Total equity		14,517	13,452
Liabilities
Loans and borrowings	10	9,825	9,499
Tax liabilities		3	3
Employee benefits		1,600	1,443
Provisions		387	398
Deferred tax liabilities		1,462	1,503
Total non-current liabilities		13,277	12,846
Bank overdrafts	10	464	595
Loans and borrowings	10	1,172	1,671
Trade and other payables		5,887	5,533
Tax liabilities		425	390
Provisions		171	165
Liabilities classified as held for sale		26	178
Total current liabilities		8,145	8,532
Total liabilities		21,422	21,378
Total equity and liabilities		35,939	34,830

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

For the six-month period ended 30 June

In millions of EUR	Note	2015	2014
Operating activities
Profit		1,250	721
Adjustments for:
Amortisation, depreciation and impairments		735	699
Net interest expenses		167	209
Gain on sale of property, plant and equipment, intangible assets
and subsidiaries, joint ventures and associates		(398)	(20)
Investment income and share of profit and impairments of
associates and joint ventures and dividend income on available
for-sale and held-for-trading investments		(85)	(62)
Income tax expenses		328	325
Other non-cash items		23	56
Cash flow from operations before changes		2,020	1,928
in working capital and provisions Change in inventories		(181)	(208)
Change in trade and other receivables		(495)	(644)
Change in trade and other payables		235	556
Total change in working capital		(441 )	(296 )
Change in provisions and employee benefits		(47)	(69)
Cash flow from operations		1,532	1,563
Interest paid		(212)	(276)
Interest received		46	30
Dividend received		109	64
Income taxes paid		(335)	(258)
Cash flow related to interest, dividend and income tax		(392 )	(440 )
Cash flow from operating activities		1,140	1,123
Investing activities
Proceeds from sale of property, plant and equipment and
intangible assets		35	46
Purchase of property, plant and equipment		(602)	(549)
Purchase of intangible assets		(30)	(18)
Loans issued to customers and other investments		(83)	(49)
Repayment on loans to customers		26	18
Cash flow (used in)/from operational investing activities		(654 )	(552 )
Free operating cash flow*		486	571

Acquisition of subsidiaries, net of cash acquired	6	79	—
Acquisition of/additions to associates, joint ventures and other
investments		(6)	(2)
Disposal of subsidiaries, net of cash disposed of		979	1
Disposal of associates, joint ventures and other investments		29	—
Cash flow (used in)/from acquisitions and disposals		1,081	(1 )

For the six-month period ended 30 June

In millions of EUR	2015	2014
Cash flow (used in)/from investing activities	427	(553 )
Financing activities
Proceeds from loans and borrowings	324	547
Repayment of loans and borrowings	(823)	(1,042)
Dividends paid	(554)	(433)
Purchase own shares	(193)	—
Acquisition of non-controlling interests	(22)	(134)
Other	(2)	—
Cash flow (used in)/from financing activities	(1,270 )	(1,062 )
Net cash flow	297	(492 )
Cash and cash equivalents (including bank overdrafts) as at 1
January	72	1,112
Effect of movements in exchange rates	(1)	2
Cash and cash equivalents (including bank overdrafts) as at 30
June	368	622

* Not subject to review by external auditor

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

									Equity
									attributable to
									equity holders	Non
In millions of EUR	Share capital	Share Premium	Translation reserve	Hedging reserve	Fair value reserve	Other legal reserves	Reserve for own shares	Retained earnings	of the Company	controlling interests	Total equity
Balance as at 1 January 2015	922	2,701	(1,097 )	(99)	96	743	(70 )	9,213	12,409	1,043	13,452
Profit	—	—	—	—	—	87	—	1,057	1,144	106	1,250
Other comprehensive income	—	—	578	45	23	—	—	(93)	553	22	575
Total comprehensive income	—	—	578	45	23	87	—	964	1,697	128	1,825
Transfer to retained earnings	—	—	—	—	—	(88)	—	88	—	—	—
Dividends to shareholders	—	—	—	—	—	—	—	(426)	(426)	(172)	(598)
Purchase/ reissuance own/ non-controlling
shares	—	—	—	—	—	—	(193)	(2)	(195)	3	(192)
Own shares delivered	—	—	—	—	—	—	21	(21)	—	—	—
Share-based payments	—	—	—	—	—	—	—	16	16	(1)	15
Acquisition of non-controlling interests without
a change in control	—	—	—	—	—	—	—	2	2	(1)	1
Changes in consolidation	—	—	14	(17)	—	(7)	—	24	14	—	14
Balance as at 30 June 2015	922	2,701	(505 )	(71)	119	735	(242 )	9,858	13,517	1,000	14,517

MEDIA RELEASE

									Equity
									attributable to
									equity holders	Non
In millions of EUR	Share capital	Share Premium	Translation reserve	Hedging reserve	Fair value reserve	Other legal reserves	Reserve for own shares	Retained earnings	of the Company	controlling interests	Total equity
Balance as at 1 January 2014	922	2,701	(1,721 )	2	97	805	(41 )	8,637	11,402	954	12,356
Profit	—	—	—	—	—	78	—	553	631	90	721
Other comprehensive income	—	—	201	(30)	(9)	—	—	(81)	81	(3)	78
Total comprehensive income	—	—	201	(30)	(9 )	78	—	472	712	87	799
Transfer to retained earnings	—	—	—	—	—	(104)	—	104	—	—	—
Dividends to shareholders	—	—	—	—	—	—	—	(305)	(305)	(152)	(457)
Purchase/ reissuance own/ non-controlling
shares	—	—	—	—	—	—	—	—	—	4	4
Own shares delivered	—	—	—	—	—	—	3	(3)	—	—	—
Share-based payments	—	—	—	—	—	—	—	4	4	—	4
Acquisition of non-controlling interests without
a change in control	—	—	—	—	—	—	—	(155)	(155)	21	(134)
Balance as at 30 June 2014	922	2,701	(1,520 )	(28)	88	779	(38 )	8,754	11,658	914	12,572

Notes to the condensed consolidated interim financial statements

REPORTING ENTITY

Heineken N.V. (the 'Company') is a company domiciled in the Netherlands. The condensed consolidated interim financial statements of the Company as at and for the six-month period ended 30 June 2015 comprise the Company and its subsidiaries (together referred to as 'HEINEKEN') and HEINEKEN's interest in jointly controlled entities and associates.

The consolidated financial statements of HEINEKEN as at and for the year ended 31 December 2014 are available upon request from the Company's registered office at Tweede Weteringplantsoen 21, Amsterdam or at www.theheinekencompany.com.

2. BASIS OF PREPARATION

(a) Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of HEINEKEN as at and for the year ended 31 December 2014.

These condensed consolidated interim financial statements were approved by the Executive Board of the Company on 31 July 2015. Deloitte Accountants B.V. has reviewed the condensed consolidated interim financial statements. Their report is included on page 44.

(b) Functional and presentation currency

These condensed consolidated interim financial statements are presented in Euro, which is the Company's functional currency. All financial information presented in Euro has been rounded to the nearest million unless stated otherwise.

(c) Use of estimates and judgements

The preparation of financial statements in conformity with International Financial Reporting Standards (IFRS) requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying HEINEKEN's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2014.

3. SIGNIFICANT ACCOUNTING POLICIES

(a) General

The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in HEINEKEN's consolidated financial statements as at and for the year ended 31 December 2014.

(b) Income tax

Income tax expenses are recognised based on management's best estimate of the weighted average expected full year income tax rate per country.

4. SEASONALITY

The performance of HEINEKEN is subject to seasonal fluctuations as a result of weather conditions. HEINEKEN's full year results and volumes are dependent on the performance in the peak-selling seasons (May through to August and December), typically resulting in higher revenue and profitability in the second half year. The impact from this seasonality is also noticeable in several working capital related items such as inventory, trade receivables and payables.

5. OPERATING SEGMENTS

For the six-month period ended 30 June 2015 and 30 June 2014

	Central and							Africa and the	Head Office &
		Western Europe		Eastern Europe		The Americas		Middle East		Asia Pacific	Other/Eliminations			Consolidated
In millions of EUR	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
Revenue
Third party revenue	3,335	3,297	1,414	1,418	2,520	2,209	1,382	1,293	1,171	931	74	126	9,896	9,274
Interregional revenue	389	353	14	9	2	4	—	—	1	1	(406)	(367)	—	—
Total revenue	3,724	3,650	1,428	1,427	2,522	2,213	1,382	1,293	1,172	932	(332 )	(241)	9,896	9,274
Other income	6	8	9	4	4	3	—	5	—	—	379	—	398	20
Result from operating
activities	346	310	134	102	369	336	289	315	218	163	342	11	1,698	1,237
Net finance expenses													(203)	(246)
Share of profit of
associates and joint
ventures and
impairments thereof	1	(1)	5	6	36	30	25	6	16	14	—	—	83	55
Income tax expenses													(328)	(325)
Profit													1,250	721
EBIT reconciliation
EBIT¹	347	309	139	108	405	366	314	321	234	177	342	11	1,781	1,292
Eia¹	26	62	7	14	44	40	25	23	86	73	(335)	7	(147)	219
EBIT (beia) ¹	373	371	146	122	449	406	339	344	320	250	7	18	1,634	1,511
As at 30 June 2015 and
31 December 2014
Total segment assets	10,523	9,862	4,340	4,213	7,977	7,842	4,009	3,942	8,458	8,254	(125 )	43	35,182	34,156
Unallocated assets													757	674
Total assets													35,939	34,830

¹ For definitions see 'Glossary'. Note that these are non-GAAP measures and therefore not subject to review by external auditor. For further detail please refer to note 8.

6. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES AND NON-CONTROLLING INTERESTS

Announced acquisition of Pivovarna Laško

On 13 April 2015, HEINEKEN announced that a binding agreement was signed to acquire a 51.11 per cent direct stake in Pivovarna Laško d.d. The acquisition is expected to close in the second half of 2015 and is subject to customary regulatory approvals. It will be followed by a mandatory takeover offer extended to all remaining shareholders.

Accounting for the acquisition of Zagorka

The dividend received in 2015 from Brewmaster Holdings in relation to the acquisition of Zagorka AD in 2014 is presented in the cash flow from investing activities in the cash flow statement.

Acquisitions of non-controlling interests

There were no individually material acquisitions of non-controlling interests during the period ended 30 June 2015.

Disposals

Disposal of EMPAQUE

On 18 February 2015, HEINEKEN sold its 100 per cent stake in EMPAQUE to Crown Holdings Inc. for an enterprise value of USD1,225 million. A post tax EUR379 million book gain on the disposal was recorded in other income.

FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

Financial risk management

The aspects of the Company's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2014.

Carrying amount versus fair value

The carrying amount of financial assets and liabilities shown in the statement of financial position and their fair values are as follows:

As at		30 June 2015		31 December 2014
	Carrying	Fair	Carrying	Fair
In millions of EUR	amount	value	amount	value
Bank loans	(574)	(574)	(540)	(540)
Unsecured bond issues	(8,527)	(8,877)	(8,769)	(9,296)
Finance lease liabilities	(14)	(14)	(15)	(15)
Other interest-bearing liabilities	(1,252)	(1,252)	(1,275)	(1,275)

For all other financial instruments carrying amount is a reasonable approximation of fair value.

Fair value hierarchy

The tables below present the financial instruments accounted for or disclosed at fair value by level of the following fair value measurement hierarchy:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2)
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)

As at 30 June 2015
In millions of EUR	Level 1	Level 2	Level 3	Total
Available-for-sale investments	130	86	74	290
Non-current derivative assets	—	192	—	192
Current derivative assets	—	56	—	56
Investments held for trading	17	—	—	17
	147	334	74	555

Non-current derivative liabilities	—	(20)	—	(20)
Loans and borrowings	(8,877)	(1,840)	—	(10,717)
Current derivative liabilities	—	(112)	—	(112)
	(8,877 )	(1,972 )	—	(10,849 )


As at 31 December 2014
In millions of EUR	Level 1	Level 2	Level 3	Total
Available-for-sale investments	99	86	68	253
Non-current derivative assets	—	97	—	97
Current derivative assets	—	122	—	122
Investments held for trading	13	—	—	13
	112	305	68	485

Non-current derivative liabilities	—	(8)	—	(8)
Loans and borrowings	(9,296)	(1,829)	—	(11,125)
Current derivative liabilities	—	(104)	—	(104)
	(9,296 )	(1,941 )	—	(11,237 )

There were no transfers between level 1 and level 2 of the fair value hierarchy during the six-month period ended 30 June 2015.

Level 2

HEINEKEN determines level 2 fair values for over-the-counter securities based on broker quotes. The fair values of simple over-the-counter derivative financial instruments are determined by using valuation techniques. These valuation techniques maximise the use of observable market data where available.

The fair value of derivatives is calculated as the present value of the estimated future cash flows based on observable interest yield curves, basis spread and foreign exchange rates. These calculations are tested for reasonableness by comparing the outcome of the internal valuation with the valuation received from the counterparty. Fair values reflect the credit risk of the instrument and include adjustments to take into account the credit risk of HEINEKEN and counterparty when appropriate.

Level 3

Details of the determination of level 3 fair value measurements are set out below.

	30 June	31 December
As at	2015	2014
Available-for-sale-investments based on level 3
Balance as at 1 January	68	59
Fair value adjustments recognised in other comprehensive income	6	10
Disposals	—	(1)
Transfers	—	—
Balance as at end of period	74	68

The fair values for the level 3 available-for-sale investments are based on the financial performance of the investments and the market multiples of comparable equity securities.

8. NON-GAAP MEASURES

In the internal management reports HEINEKEN measures its performance primarily based on EBIT and EBIT beia (before exceptional items and amortisation of acquisition-related intangible assets). Both are non-GAAP measures not calculated in accordance with IFRS. Exceptional items are defined as items of income and expense of such size, nature or incidence, that in the view of management their disclosure is relevant to explain the performance of HEINEKEN for the period. Beia adjustments are also applied on operating profit and net profit metrics.

The table below presents the relationship between IFRS measures, being results from operating activities and net profit, and HEINEKEN non-GAAP measures, being EBIT, EBIT (beia), Consolidated operating profit (beia), Group operating profit (beia) and Net profit (beia), for the six-month period ended 30 June.

MEDIA RELEASE

In millions of EUR	2015*	2014*
Result from operating activities (or consolidated operating profit)	1,698	1,237
Share of profit of associates and joint ventures and impairments thereof
(net of income tax)	83	55
EBIT	1,781	1,292
Exceptional items and amortisation of acquisition-related intangible
assets included in EBIT	(147)	219
EBIT (beia)	1,634	1,511
Share of profit of associates and joint ventures and impairments thereof
(beia) (net of income tax)	(85)	(57)
Consolidated operating profit (beia)	1,549	1,454
Attributable share of operating profit from joint ventures and associates
and impairments thereof	141	106
Group operating profit (beia)	1,690	1,560
Profit attributable to equity holders of the Company (net profit)	1,144	631
Exceptional items and amortisation of acquisition-related intangible
assets included in EBIT	(147)	219
Exceptional items included in finance costs	—	(1)
Exceptional items included in income tax expense	(62)	(55)
Exceptional items included in non-controlling interest	(20)	(22)
Net profit (beia)	915	772

* Not subject to review by external auditor

Exceptional items and amortisation of acquisition-related intangible assets for the sixmonth period ended 30 June 2015 on EBIT level amounted to a gain of EUR147 million (six-month period ended 30 June 2014: loss of EUR219 million), mainly relating to the EMPAQUE gain on sale of EUR379 million, restructuring expenses at head office of EUR45 million and amortisation of acquisition-related intangible assets amounting to EUR150 million (six-month period ended 30 June 2014: EUR144 million). In addition, exceptional items for the six-month period ended 30 June 2015 on EBIT level include an asset writedown in Rwanda of EUR10 million.

The exceptional items in tax mainly relate to the tax impact of exceptional items in EBIT.

Reconciliation of reported to consolidated (beia) financial measures

	For the six-month period ended 30 June 2015
		EIA*
		Reported Amortisation of acquisition related intangible	Exceptional items	(beia)*
In millions of EUR, except per share data		assets
Result from operating activities Attributable share of net profit from (or consolidated operating profit)	1,698	148	(297)	1,549
associates and joint ventures	83	2	—	85
EBIT	1,781	150	(297 )	1,634
Net profit	1,144	98	(327)	915
Diluted EPS (EUR)	1.99	0.17	(0.57)	1.59

* Not subject to review by external auditor

	For the six-month period ended 30 June 2014
		EIA*
		Reported Amortisation of acquisition related intangible	Exceptional items	(beia)*
In millions of EUR, except per share data		assets
Result from operating activities (or consolidated operating profit) Attributable share of net profit from	1,237	142	75	1,454
associates and joint ventures	55	2	—	57
EBIT	1,292	144	75	1,511
Net profit	631	108	33	772
Diluted EPS (EUR)	1.10	0.19	0.05	1.34

* Not subject to review by external auditor

9. EQUITY

Reserves

The reserves consist of translation reserve, hedging reserve, fair value reserve, other legal reserve and reserve for own shares. The main variance in comparison to prior year is driven by foreign currency translation in translation reserve.

Weighted average number of shares

For the six-month period ended 30 June

In shares	2015	2014
Weighted average number of shares – basic	574,510,552	575,071,363
Effect of shares to be delivered under the Long-Term Variable
award plan	1,186,783	931,250
Weighted average number of shares – diluted	575,697,335	576,002,613

Treasury shares

Following the completion of the divestment of EMPAQUE, HEINEKEN announced to deploy a share buyback programme. During the six-month period ended 30 June 2015, HEINEKEN purchased 2,504,494 shares for a total consideration of EUR174 million. These shares have not been cancelled.

Dividends

The following dividends were declared and paid by HEINEKEN:

For the six-month period ended 30 June
In millions of EUR	2015	2014
Prior year final dividend declared and paid in 2015 EUR0.74 (2014:
EUR0.53)	426	305

After the balance sheet date the Executive Board announced the following interim dividend that has not been provided for:

In millions of EUR	2015	2014
EUR0.44 per qualifying ordinary share (2014: EUR0.36)	253	207

10. NET INTEREST-BEARING DEBT POSITION

	30 June	31 December
In millions of EUR	2015	2014
Non-current interest-bearing liabilities	9,804	9,491
Current portion of non-current interest-bearing liabilities	563	1,107
Deposits from third parties (mainly employee loans)	609	564
	10,976	11,162
Bank overdrafts	464	595
	11,440	11,757
Cash, cash equivalents and current other investments	(849)	(681)
Net interest-bearing debt position	10,591	11,076

New financing

HEINEKEN has launched a EUR1.0 billion Euro Commercial Paper programme to facilitate its cash management operations and to further diversify its funding sources. EUR218 million was in issue as per 30 June 2015.

Financing headroom*

As at 30 June 2015, the committed financing headroom including cash balances available at Group level was approximately EUR2.5 billion.

Incurrence covenant*

HEINEKEN has an incurrence covenant in some of its financing facilities. This incurrence covenant is calculated by dividing net debt by EBITDA (beia) (both based on proportional consolidation of joint ventures and including acquisitions and excluding disposals on a 12-month pro-forma basis). As at 30 June 2015 this ratio was 2.3 (as at 30 June 2014: 2.5). If the ratio would be beyond a level of 3.5, the incurrence covenant would prevent HEINEKEN from conducting further significant debt financed acquisitions.

* Not subject to review by external auditor

11. CONTINGENCIES

Brazil

As part of the acquisition of the beer operations of FEMSA in 2010, HEINEKEN inherited existing legal proceedings with labour unions, tax authorities and other parties of its, now wholly-owned, subsidiaries Cervejarias Kaiser Brasil and Cervejarias Kaiser Nordeste (jointly, Heineken Brasil). The proceedings have arisen in the ordinary course of business and are common to the current economic and legal environment of Brazil. The proceedings have partly been provided for. The contingent amount being claimed against Heineken Brasil resulting from such proceedings as at 30 June 2015 is EUR591 million. Such contingencies were classified by legal counsel as less than probable but more than remote of being settled against Heineken Brasil. However, HEINEKEN believes that the ultimate resolution of such legal proceedings will not have a material adverse effect on its consolidated financial position or result of operations. HEINEKEN does not expect any significant liability to arise from these contingencies. A significant part of the aforementioned contingencies (EUR321 million) is tax-related and qualifies for indemnification by FEMSA.

As is customary in Brazil, Heineken Brasil has been requested by the tax authorities to collateralise tax contingencies currently in litigation amounting to EUR393 million by either pledging fixed assets or entering into available lines of credit which cover such contingencies.

No other material updates in comparison with 2014 year-end reporting were identified that need to be reported.

12. RELATED PARTY TRANSACTIONS

HEINEKEN has related party relationships with its shareholders, associates and joint ventures, pension funds, employees and key management. Transactions with shareholders, associates and joint ventures are conducted on terms comparable to transactions with third parties.

The related party transactions in the first six-month period ended 30 June 2015 do not significantly deviate from the transactions as reflected in the financial statements as at and for the year ended 31 December 2014.

13. SUBSEQUENT EVENTS

Increase in stake of joint venture

On 7 July 2015, HEINEKEN acquired a 3.2 per cent stake in United Breweries Limited from United Spirits Limited for Rs 872 crore (approximately EUR125 million), increasing the total shareholding to 42.1 per cent.

Disposal of wholesale operations in Poland

On 23 July 2015, Group Żywiec signed with Orbico Group a conditional agreement upon which Orbico Group will purchase 80 per cent of the shares in Distribev Sp. z o.o. The enterprise value for an 80 per cent stake amounted to PLN96 million (EUR23 million), and is subject to customary price adjustments. Closing is subject to regulatory approval and is expected in the second half of this year.

Restructuring of South African and Namibian operations

On 27 July 2015, HEINEKEN announced that along with Diageo plc and The Ohlthaver & List (O&L) Group of Companies, the majority shareholder of Namibia Breweries Limited ('NBL'), that they have agreed to restructure their respective joint venture operations in South Africa and Namibia. The agreement will result in HEINEKEN, Diageo and NBL closing their distribution joint venture, brandhouse Beverages (Pty) Ltd. HEINEKEN will pay a total net cash consideration of c.ZAR1.9 billion (c. EUR136 million) to Diageo. Completion of the transaction is expected in the fourth quarter of 2015 and is subject to customary regulatory approvals.

STATEMENT OF THE EXECUTIVE BOARD

Statement ex Article 5:25d Paragraph 2 sub c Financial Markets Supervision Act ("Wet op het financieel toezicht").

To our knowledge:

1. The condensed consolidated interim financial statements for the six-month period ended 30 June 2015, which have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, give a true and fair view of the assets, liabilities, financial position, and profit of Heineken N.V. and the undertakings included in the consolidation as a whole;
1. The management report of the Executive Board for the six-month period ended 30 June 2015 (as set out on pages 6-23 of this press release) includes a fair review of the information required pursuant to article 5:25d paragraphs 8 and 9 of the Dutch Financial Markets Supervision Act ("Wet op het financieel toezicht").

Executive Board

Jean-François van Boxmeer (Chairman/CEO) Laurence Debroux (CFO) Amsterdam, 31 July 2015

REVIEW REPORT ON CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

To: the Executive Board and Supervisory Board of Heineken N.V.

Introduction

We have reviewed the accompanying condensed consolidated interim financial statements as at 30 June 2015 of Heineken N.V., Amsterdam, which comprises the condensed consolidated interim statement of financial position as at 30 June 2015, the condensed consolidated interim income statement and the condensed consolidated interim statements of comprehensive income, changes in equity, and cash flows for the period of six months ended 30 June 2015, and the notes (the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope

We conducted our review in accordance with Dutch law including standard 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements as at 30 June 2015 are not prepared, in all material respects, in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union.

Amsterdam, 31 July 2015

Deloitte Accountants B.V.

J. Dalhuisen

GLOSSARY

Acquisition-related intangible assets

Acquisition-related intangible assets are assets that HEINEKEN only recognises as part of a purchase price allocation following an acquisition. This includes amongst others brands, customer-related and certain contract-based intangibles.

Beia

Before exceptional items and amortisation of acquisition-related intangible assets.

Cash conversion ratio

Free operating cash flow/net profit (beia) before deduction of non-controlling interests.

Depletions

Sales by distributors to the retail trade.

Dividend payout

Proposed dividend as percentage of net profit (beia).

Earnings per share

Basic

Net profit divided by the weighted average number of shares – basic – during the year.

Diluted

Net profit divided by the weighted average number of shares – diluted – during the year.

EBIT

Earnings before interest, taxes and net finance expenses. EBIT includes HEINEKEN's share in net profit of joint ventures and associates.

EBITDA

Earnings before interest, taxes, net finance expenses, depreciation and amortisation. EBITDA includes HEINEKEN's share in net profit of joint ventures and associates.

Effective tax rate

Income tax expenses expressed as a percentage of the profit before income tax, adjusted for share of profit of associates and joint ventures and impairments thereof (net of income tax).

Eia

Exceptional items and amortisation of acquisition-related intangible assets.

Free operating cash flow

This represents the total of cash flow from operating activities, and cash flow from operational investing activities.

Innovation rate

The innovation rate is calculated as revenues generated from innovations (introduced in the past 40 quarters for a new category, 20 quarters for a new brand and 12 quarters for all other innovations, excluding packaging renovations) divided by total revenue.

Net debt

Non-current and current interest-bearing loans and borrowings and bank overdrafts less investments held for trading and cash.

Net debt/EBITDA (beia) ratio

The ratio is based on a 12 month rolling calculation for EBITDA (beia).

Net profit

Profit after deduction of non-controlling interests (profit attributable to equity holders of the Company).

Organic growth

Organic growth excludes the impact of foreign currency translation, consolidation changes, accounting policy changes, exceptional items and amortisation of acquisitionrelated intangible assets.

Organic volume growth

Growth in volume, excluding the effect of consolidation changes.

Operating profit

Consolidated operating profit Result from operating activities.

Group operating profit (beia)

Consolidated operating profit (beia) plus attributable share of operating profit (beia) from joint ventures and associates.

Profit

Total profit of the Group before deduction of non-controlling interests.

®

All brand names mentioned in this report, including those brand names not marked by an ®, represent registered trademarks and are legally protected.

Region

A region is defined as HEINEKEN's managerial classification of countries into geographical units.

Revenue

Consolidated revenue Net realised sales proceeds.

Group revenue (beia)

Consolidated revenue plus attributable share of revenue from joint ventures and associates.

Volume

Consolidated beer volume

100 per cent of beer volume produced and sold by consolidated companies.

Group beer volume

Consolidated beer volume plus attributable share of beer volume from joint ventures and associates.

Group total volume

Total consolidated volume plus attributable share of volume from joint ventures and associates.

Heineken® volume

100 per cent of beer volume sold of the Heineken® brand by consolidated companies, joint ventures and associates and produced and sold under license by third parties.

Heineken® volume in premium segment

Heineken® volume excluding Heineken® volume in the Netherlands.

Licensed beer & non-beer volume

Cider, soft drink and non-beer volume sold in consolidated companies, joint ventures and associates, as well as HEINEKEN's brands produced and sold under license by third parties.

Third party products volume

Volume of third party products sold through consolidated companies, joint ventures and associates.

Total consolidated volume

100 per cent of volume produced and sold by consolidated companies (including beer, cider, soft drinks and other beverages), volume of third party products and volume of HEINEKEN's brands produced and sold under license by third parties.

Weighted average number of shares

Basic

Weighted average number of outstanding shares.

Diluted

Weighted average number of outstanding shares and the expected shares to be delivered under the Long-Term Variable award plan.

AI assistant

Heineken N.V. — Earnings Release 2015

3848_iss_2015-08-03_27d48f05-6b0b-4aa5-899b-8f890bd11d31.pdf

Heineken N.V. reports 2015 half year results

Continued organic revenue and profit growth

CEO STATEMENT

FINANCIAL SUMMARY

OUTLOOK STATEMENT

GROUP OPERATIONAL REVIEW

MEDIA RELEASE

INTERIM DIVIDEND

MEDIA RELEASE

Enquiries

Media Investors

Investor Calendar Heineken N.V.

Conference call details

Editorial information:

Disclaimer:

REGIONAL OVERVIEW

Africa Middle East

Americas

Asia Pacific

Central & Eastern Europe

Western Europe

Head office costs, other items and eliminations

CONSOLIDATED FINANCIAL REVIEW

Changes in consolidation

Revenue

Total expenses (beia)

Operating profit (beia)

Share of net profit of associates and joint ventures (beia)

Net finance expenses (beia)

Income tax expense (beia)

Net profit and net profit (beia)

US dollar Transactional Hedging

Capital expenditure and cash flow

Financial structure

Average number of shares

Share buyback update

RISK PARAGRAPH

Consolidated & Group Metrics: Half year 2015

Consolidated & Group Metrics: First Quarter 2015

Consolidated & Group Metrics: Second Quarter 2015

Condensed consolidated interim financial statements for the six-month period ended 30 June 2015

CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

MEDIA RELEASE

Notes to the condensed consolidated interim financial statements

2. BASIS OF PREPARATION

(a) Statement of compliance

(b) Functional and presentation currency

(c) Use of estimates and judgements

3. SIGNIFICANT ACCOUNTING POLICIES

(a) General

(b) Income tax

4. SEASONALITY

5. OPERATING SEGMENTS

For the six-month period ended 30 June 2015 and 30 June 2014

6. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES AND NON-CONTROLLING INTERESTS

Announced acquisition of Pivovarna Laško

Accounting for the acquisition of Zagorka

Acquisitions of non-controlling interests

Disposals

Disposal of EMPAQUE

Financial risk management

Carrying amount versus fair value

Fair value hierarchy

Level 2

Level 3

8. NON-GAAP MEASURES

Reconciliation of reported to consolidated (beia) financial measures

9. EQUITY

Reserves

Weighted average number of shares

Treasury shares

Dividends

10. NET INTEREST-BEARING DEBT POSITION

Heineken N.V. Earnings Release 2015