Heineken N.V. reports strong organic net profit growth of 23% for 2007

Amsterdam – Heineken NV announced today a 23% organic growth in net profit for the twelve months to end December 2007, this performance is in line with the Company’s forecast
published in August 2007, net profit (beia) for 2007 amounted to EUR 1,119 million with EBIT (beia) growing 20% organically to EUR 1,846 million.

Once again, the Company was able to drive growth in all key metrics across virtually all regions.

At the Annual General Meeting of shareholders in April 2008, Heineken will propose a 17% increase in dividend for 2007 to EUR 0.70 per share (2006: EUR 0.60).

For 2008, Heineken expects another year of positive organic net profit growth driven by the shift towards premium beer, strong consumer demand for its brands, improved pricing and a continued
focus on cost control.

Key figures1




Organic growth

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Record organic profit growth: Net Profit (beia) increased organically by 22.6%, driven by the 20% organic increase in EBIT (beia). Reported Net Profit was 33% lower, reflecting
EUR 301 million of net exceptional charges, compared with EUR 291 million of net exceptional gains in 2006.

Strong revenue and volume growth: Revenue grew 6.2%. Organic growth in revenue was 7.3%, driven by strong organic volume growth and a positive price and sales mix. Foreign
currency fluctuations had a negative effect on revenue. Consolidated beer volume grew 7.1% to 119.8 million hectolitres of which 6.5% was organic growth and 0.6% was attributable to the
first-time consolidation of newly acquired companies. Group beer volume grew 5.5% to 139.2 million hectolitres.

Heineken brand grows share: Volume of the Heineken brand in the international premium segment grew 10% to 24.7 million hectolitres, increasing share in the global segment.
Volume increased substantially in all regions.

Volume sold through innovative draught beer systems grows 80%: Innovation in draught beer systems contributed more than 1.2 million hectolitres to the increase of the volume of
the Heineken brand and other brands, and an improvement in the sales mix. DraughtKeg sold more than 10 million 5-litre kegs.

Fit2Fight cost savings delivered: The F2F fixed cost ratio improved further to 30.7% from 33.1% in 2006. In 2007, Heineken delivered additional gross cost savings of EUR191
million, which is ahead of plan, achieving 68% of the forecast 3-year plan cumulative amount.

CEO Statement

Jean-François van Boxmeer, CEO of Heineken commented:

«2007 was an outstanding year. We executed our plans quicker, with high impact and focus on performance and delivery of our key priorities.

«In doing so, we grew organic net profit by 23%; we grew revenues by more than 7%, volumes by more than 6% and the Heineken brand by 10%; we delivered EUR191 million of annual gross cost
savings as promised; we achieved this with a leaner organisation and a more accountable decision making culture. Through our anticipated acquisition of Scottish and Newcastle, we will
strengthen our global position, reinforce our European leadership and acquire strong platforms for further profitable growth.

«In 2008 we will focus on realising the opportunities that we have created and on delivering another year of positive growth. I am fully confident that despite the challenges of rising
input costs and the uncertain economic outlook in some regions we will again be strong and competitive enough to deliver positive profit growth.»

2008 profit outlook

Heineken expects 2008 to be another year of positive organic growth in net profit, based on a further improvement in sales mix, better prices, higher beer volumes and savings in fixed costs.
The international premium segment will continue to grow at a higher rate than that of the overall beer market and the Heineken brand will benefit from this trend. In its third and final year,
the Fit 2 Fight cost savings programme is expected to deliver approximately EUR 150 million of gross costs savings, delivering in full the F2F programme launched at the beginning of 2006.

As a result of worldwide input cost inflation, Heineken expects a 15% price increase in its raw material and packaging costs. The Company expects that it will be able to fully pass on the
impact of the increased input and energy costs in most of its markets. Due to the uncertainties around the possible impact of worldwide consumer price inflation and the effect of weakening
economies on consumer spending and beer consumption, it is too early to make a reliable estimate of volume levels for 2008.

Heineken expects capital expenditure related to property, plant and equipment to total approximately EUR1.2 billion in 2008. Part of this investment is related to capacity expansion and the
construction of new breweries in Central & Eastern Europe, Asia and Africa. Capital expenditures will be financed mainly from cash flow.
The total restructuring costs associated with the Fit 2 Fight saving programme is expected to amount to approximately EUR 225 million, of which an estimated EUR 75 million will relate to 2008.
As a result of cost-reduction programmes, the underlying downward trend in the number of employees will continue.
In the event of a successful offer for Scottish & Newcastle, Heineken’s share of the assets will be consolidated for the first-time when the transaction becomes effective.

Anticipated acquisition of assets of Scottish & Newcastle plc

On 25 January 2008, Sunrise Acquisitions Limited, (a newly incorporated company jointly owned by Heineken N.V. and Carlsberg A/S) and Scottish & Newcastle plc (S&N) announced that they
had reached agreement on the terms of a recommended cash offer of 800 pence per S&N share. It is intended that the acquisition will be implemented by means of a court-sanctioned scheme of

Following completion of the acquisition, which is expected to take place in the second quarter of 2008, S&N’s share of BBH, as well as the French, Greek, Chinese and Vietnamese operations
will be transferred to Carlsberg. Heineken will continue to hold the remaining businesses, principally the United Kingdom and Ireland, Portuguese, Finnish, Belgian, the United States and Indian

For Heineken, the intended acquisition represents a significant strategic step that will create strong platforms for growth. It is anticipated that the acquisition will provide extensive new
distribution and portfolio platforms in the United Kingdom and other markets to drive premium Heineken brand growth. In Western Europe, where Heineken has increased profitability consistently,
year after year, Heineken will acquire number 1 (in the United Kingdom) and number 2 (Portugal, Ireland, Finland and Belgium) market positions in stable, profitable markets. The acquisition
will also add attractive brands such as Newcastle Brown Ale, Foster’s, John Smith’s Bitter and Strongbow cider to Heineken’s brand portfolio.

The enterprise value of the relevant assets amounts to EUR6.1 billion. The acquisition will be entirely financed with debt and committed financing is in place.

At the Annual General Meeting of shareholders on 17 April 2008, shareholders of Heineken N.V. and Heineken Holding N.V. will be asked to approve the acquisition. Heineken N.V.’s and Heineken
Holding N.V.’s controlling shareholder provided irrevocable undertakings to vote in favour of the transaction. The transaction will also require court, regulatory and S&N shareholders’

Dividend proposal

The Annual General Meeting of Shareholders on 17 April 2008 will be asked to approve the distribution of an increased cash dividend of EUR 0.70 per share of EUR 1.60 nominal value (2006: EUR
0.60). This represents a dividend pay out ratio of 30.5% in line with Heineken’s dividend policy. As an interim dividend of EUR 0.24 per share was paid on 20 September 2007, the final dividend
will be EUR 0.46 per share, subject to the 15% Dutch withholding tax. Heineken shares will be quoted ex-dividend on 21 April 2008.

1 For an explanation of the terms in this press release please refer to the glossary at the back of the release

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