Risk Reward Update

Research evidence excerpt

Risk Reward Update

of Risk Rewards Themes here

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research, Morgan Stanley Institutional Equities Division. The probabilities of our Bull,

Base, and Bear case scenarios playing out were estimated with implied volatility data from the options market as of 6

Jul 2026. All figures are approximate risk-neutral probabilities of the stock reaching beyond the scenario price in either

three-months’ or one-years’ time. View explanation of Options Probabilities methodology here

BULL CASE €111.00 BASE CASE €78.00 BEAR CASE €52.00

Implied ~19.9x our bull case CY26e EPS Implied ~14.8x our base case CY26e EPS Implied ~10.2x our bear case CY26e EPS

Resilient consumer spending supports faster Our PT implies 14.8x CY26e P/E, vs Staples We factor in a recession scenario, assuming

volume growth in 2026 than in our base currently on 16.5x. We note that Heineken's downtrading across key markets as inflation

case: we assume OSG of 5% per annum. depreciation charge (on owned assets) is squeezes consumer disposable income.

Gross margin uplift and cost savings see meaningfully below its capex, which flatters Annual OSG of 2%, after flattish FY26

2026 EBIT margin recover to 16.2%, up the P&L. As a result, DCF valuation does not (reflecting the energy price shock) delays a

75bps yoy, with 50bps increase per annum generate the usual premium to a P/E gross / EBIT margin recovery, and while our

thereafter. In a P/E valuation, the shares re- multiple based approach. We assume a 10% bear case margin in FY26 is 50bps lower

rate to ~18.2x CY26e P/E (~10% premium to discount to staples is appropriate given poor than 2025, in 2027 it falls a further 150bps