Milan, Italy | May 8-9, 2018 | Heineken N.V.

Heineken Italy

Winning in ItalySøren HaghManaging Director Heineken Italy

1

Summary

✓ Complex and highly competitive market, where HEINEKEN has a

strong leadership

✓ A growing market, having recovered past historic record

✓ A Strategy to WIN based on 6 priorities creating a sustainable

competitive advantage

✓ Strong delivery of results with significant upside potential for

the future

2

Agenda

Italy Market OverviewHITA Strategy to WIN

Results and Opportunities

3

Landscape

Food

GDP per capita (€) 34,000 33,000 30,000 18,000 17,000 20,000

GDP growth 0.9% 1.3% 0.8% 0.8% -0.1% -0.9%

Unemployment 8.1% 6.8% 10.4% 19.6% 22.1% 17.8%

Italy: a large economy with regional differences

▪ #3 economy in Eurozone

▪ #8 economy in the World

▪ 60m Nationals with strong appreciation for food, drinks, quality and design

▪ 60m Tourists per year (+5% vs 2016)

Source: Istat 2016 and Confturismo - Confcommercio

4

17.9

18.5

17.8

16.917.2

17.7 17.5 17.5 17.8

18.919.0

19.6*

30.3

28.0

29.8 29.2

30.831.4

32.5*

105 10398

84

69 68

47

31 31

Growing market with per capita consumption upside

Beer market and Consumption per capita

Consumption per capita 2016(litres per year)

Beer market (million hl) Consumption (litres per capita)

Source: Associazione dei birrai e dei maltatori (ASSOBIRRA) and Global data Forecast

* Internal Estimation

5

• 43% of the market - 8m hl• 1,800 Distributors• 280K Points of Consumption

ON PREMISE

• 57% of the market - 11m hl• 250 Customers (International and Local) • 25K Stores

OFF PREMISE

Two strong channels with a range of formats

Source: Internal estimates based on Associazione dei birrai e dei maltatori (ASSOBIRRA)

55%

45%

PackedDraught

43%

24%

18%

8%7%

Day Bar

Pizzeria

Restaurant

Night Bar

Pub & Disco

53%

13%

13%

13%

7%

SuperDiscountProxiHyperTraditional

32%

26%

20%

12%

10%

Bottle 66

Bottle 33

Other bottles

Can 50

Format Sub ChannelsFormat Sub Channels

6

Heineken Italy: a story of successful integrations

1974 1989

1986 1994 1996 2008

1995 2003 2017

7

Regaining market share in a competitive market

Source: Internal estimates based on Associazione dei birrai e dei maltatori (ASSOBIRRA) and internal volumes

HITA market share development

MainBrands

MS 2016

IMPORT +OTHER ITA

28.0%

18.3%

9.1%

6.1%

9.9%

28.5%

FORST MENABREA + CASTELLO

Market share by player

30.1%

29.0%

28.9%

27.6%

28.0%

29.4%

2012 2013 2014 2015 2016 2017

8

A strong and vertically integrated leader

Source: Global Data 2016

AostaComun Nuovo

Massafra

Assemini▪ 40K customers

▪ 41 warehouses

▪ 10,000 skus

▪ 1,000 employees

▪ Market leader

▪ 4 breweries

▪ 1 microbrewery

▪ 1,000 employees

▪ Comprehensive portfolio of brands

27%

42%

11%

16%

4%

Main Brands

BEER BUSINESS HORECA DISTRIBUTION BUSINESS

Hibu

9

The team

Søren HaghManaging Director

Marco LucianiOn Premise

Tiziano SomaschiniLegal

Riccardo GiulianiMD Partesa

Floris CobelensMarketing

Alfredo PratolongoCorp. Affairs

Gabriele GiudiciFinance

Mario PeregoHuman Resources

Mara MaffeiIT

Barbara GarioniOff Premise

Alberto CorteseSupply Chain

2,000 employees

Average age: 45 years

Gender Mix:

75% 25%

10

Agenda

Italy Market Overview

HITA Strategy to WINResults and Opportunities

11

Road Safety

Safety First

Fatalities

24

1613

Accidents

Life Saving Rules

24

16 13

23

2014 2015 2016 2017

No fatalities

in the last 3 years

Safety Culture

Training and Tracking

for employees and

contractors

12

Our global strategy in an Italian context

Deliver best in classinstore visibility

Lead in Drink Different

Defend Good Deal

DELIVER END TO END PRODUCTIVITY

Leverage Partesa

Optimize Regional Opportunities

Embrace Digital Transformation

Lead with Heineken® and Birra

Moretti

Make Ichnusa a Blockbuster

Shape the future of Drink Different

DEVELOP AND ENGAGE OUR PEOPLE

RESHAPE CATEGORY INMODERN TRADE

GROW INHORECA

WIN IN PREMIUM

Our Must Win Priorities

BREW A BETTER WORLD

13

Heineken®: the leader in premium

Source: Internal data

2013 2015 2017

CAGR: +0.2%

CAGR: +5.0%

FORMULA 1®

SPONSORSHIP

ON & OFF PREMISE BIG BANG ACTIVATION UCL

JOBS TO BE DONE KEY ACTIVITIES HEINEKEN® PERFORMANCE

REINFORCE CREDENTIALS ON PREMISE FLAGSHIP ACCOUNTS

& VISIBILITY

CONVERT SUPERIOR EQUITY INTO PENETRATION

14

Birra Moretti: the market leader*

Source: Internal data; *IRI

2013 2015 2017

CAGR: +4.4%

CAGR: +6.4%

WHO WE ARE KEY ACTIVITIES BIRRA MORETTI PERFORMANCE

NEW CAMPAIGN AND VISUAL IDENTITY

ON & OFF PREMISE BIG BANG ACTIVATION

INNOVATIONS

PLAYFUL ITALIAN CRAFTMANSHIP

GATEWAY TO DRINK DIFFERENT

15

Ichnusa: the super-premium blockbuster

WHO WE ARE KEY ACTIVITIES ICHNUSA PERFORMANCE

INNOVATION

UNCORRUPTEDRESPECTFUL

RAW

A small, stubborn brewery proudly rooted in Sardinia, loyal to the island and its people

BREAKTHROUGH CAMPAIGN

NEW ICONIC PACKAGING

2013 2015 2017

CAGR: +1.9%

CAGR: +8.2%

Source: Internal data

16

Drink Different: shaping the future of the category

Step change capabilities Shape digital opportunity

Leverage power brands Grow local jewels and craft Change the game with LNA

17

Horeca: a highly fragmented market

8.3mhlMarket

6 Regions

110Provinces

1,800Distributors

280,000Beer Outlets

▪ 90% with turnover below € 5m (avg 2.8m)▪ Each owned by local entrepreneur▪ 99% work with at least 3 beer companies

▪ 95% with single outlet ownership▪ 85% of market is cash payments

45% Draught and 36% Import

With major differences in beer culture and route to market

Each defining a distinct local market

High fragmention with diverse level of maturity at distributor and outlet level

Hyperlocal market in a regionalized country

Most distributors opportunistic in dealing with suppliers

Implications

18

Grow in Horeca by changing the game

Develop Top 100 Partners

OptimizeTier 2 distributors

Beer Cellar technology

Blade Draught technology

B2B Digital Platform delivered to fundamentally change way of working in Horeca

LEVERAGE PARTESA TRANSFORM THE DRAUGHT EXPERIENCE

Build Premium Brands

Data Led Insights

Category Development

Leverage Partesa Focus On Top Distributors Transform the Draught Experience

Reinforce Strongholds

19

High incidence of Price Promotion

Modern Trade: high promo share and complexityDynamic Market

+2 +1.6 +3.9

Beer is the fastest growing category

28% 29% 36%% Promo Vol

Vs 2012

High Trade Fragmentation

40% 52% 56% 68%

4 Layers of Negotiation

Major Regional Differences

North H+S Weight:

73%

South H+S Weight:

54%

Weight of Top 3 retailersHigh Penetration but low Frequency

Low presence of beer in small baskets

Low Frequency High Complexity

# of players per level of negotiation

Int.Buyinggroup

4National Buyinggroup

11

Banners

71

Customers

251

Source: GFK and IRI

20

Reshaping the category in modern trade

TRANSFORM THE DRAUGHT EXPERIENCE

WHERE WE ARE WINNING in SECOND PLACEMENT

2016 2017

x10Shopper Repertoire Insights

based on 250K

shopper transactions

KEY ENABLERS

Systematic rollout with top retailers

x5

2016 2017 2016 2017

SHOPPER INSIGHTS CATEGORY LEADERSHIP

BIG BANG ACTIVATIONCOOLER PLAN ACTIVATION

SUMMER ISLANDS

CUSTOMER VALUE PLAN SYSTEMS & TOOLSSELL OUT SALES FORCE

x100

21

Relentless drive for E2E efficiency to fund growth

SellMake Support

ConsumerCustomer

Revenuemanagement

Sell more for more

ZBC

Eliminate bad costs

Saving 2017 – 2018: 5% of cost base

Brewing

Sourcing

Packaging

Distribution

Commercial

4%

2%

2%

2%

15%

Brand portfolio pricing

Pack price architecture

Mix management

Promotion optimization

Discounts & trade terms

22

Develop and engage our people

MT

MT-1

MT-2

MT-3

10 Culture Principles

30 Town Hall Meetings

New Internal Com Platform

110 MD Customer Meetings

Heineken in Fabbrica

Community work for allHITA Leadership Development Program

End of 2017:101 Participants

50+ Leadership Training Sessions500+ Individual Coaching Sessions

Engage the Organisation Develop Leaders Change Culture

23

Brewed by the SunWinning

▪ 13,000 Solar Panels in use

▪ Massafra Brewery: Largest solar panels

installation in the world of beer

▪ Generating 4.4 GWh of electricity per year

▪ CO2 reduction of 1,700 tons

▪ Birra Moretti Specialty Beers certified

“Brewed By The Sun”

#BREWEDBYTHESUN

24

Agenda

Italy Market Overview

HITA Strategy to WIN

Results and Opportunities

25

Significant results

Source: IRI Source: Internal data Source: Internal data

Market Share Evolution Modern Trade

Net Revenuebeia excl IC

2013 2015 2017

CAGR: +4.6%

CAGR: +1.9%

2013 2015 2017

Operating Profitbeia

CAGR: +3.6%

CAGR: +0.5%

26

Significant growth opportunity

Source: internal estimates based on Associazione dei birrai e dei maltatori (ASSOBIRRA) and internal assumptions

Estimated beer market and consumption per capita

Beer market (million hl) Consumption (litres per capita)

17.8

18.7 18.819.6

21.2

24.631.4

34.0

39.0

2014 2015 2016 2017 2020 2025

27

Summary

✓ Complex and highly competitive market, where HEINEKEN has a

strong leadership

✓ A growing market, having recovered past historic record

✓ A Strategy to WIN based on 6 priorities creating a sustainable

competitive advantage

✓ Strong delivery of results with significant upside potential for

the future