Stability Africa Middle East Region In the Africa Middle East Region volume growth is driven by economic growth in Nigeria and the Middle East and continued stability and economic growth in Central Africa. Compared to previous years the Region is in most areas at peace, with some uncertainty coming up in Nigeria due to the elections in 2007. The situation in Lebanon remains fragile which could escalate further in the Middle East and could affect our operations n Egypt and the United Arab Emirates. perational risks ■organisations from Fit2Fight leineken's Fit2Fight programme has the objective reduce fixed costs versus 2005 by €200 million et of inflation by the end of 2008. Reorganisation rojects that will save €450 million by the end of 308 (after inflation) have been identified, mainly supply chain, wholesale and support functions Europe. There is risk that due to social unrest, ie production quality and supply continuity are fected, negatively impacting financial erformance and Company reputation. ne operating companies concerned will manage >e reorganisation projects with care; the right reed, alignment with relevant industrial and <ternal relations and consistent communication employees. Contingency plans have been put place. Total restructuring and other costs are stimated at €325 to 375 million before tax. quisitions and business integration the pursuit of further expansion, Heineken eeks to strike a balance between organic nd acquired growth within the limits of a onservative financing structure. In acquisitions, oecifically in emerging markets, Heineken will be iced with different cultures, business principles rid political, economic and social environments, his may affect corporate values, image and uality standards. It may also impact the ialization of long-term business plans including ynergy objectives, underlying the value of newly cquired companies. In order to mitigate these risks, Heineken has further strengthened its business development and integration activities, which includes significant involvement from relevant group departments, operating companies and regional management in carrying out effective due diligence processes and preparing take charge and integration plans. Business continuity Business interruptions could affect sales and market shares. These are not considered a major risk due to the relative size and spread of operations. An exception is the supply of beer products from the Netherlands to the USA, one of Heineken's most profitable markets. Contingency measures are in place, and Heineken's group purchasing department manages long-term contracts with preferred suppliers in order to secure supply of critical raw and packaging materials. Monitoring business continuity risks was further structured in 2006, including on the launch of Heineken Premium Light in the USA. IT security Heineken's worldwide operations rely increasingly on information systems. Heineken has a strict IT security policy to ensure confidentiality, integrity and availability of information. Tools are used to support compliance with that policy and compliance monitoring is applied. A more structured IT auditing approach is implemented in 2006. Progressing centralisation of IT systems and infrastructure has a positive impact on ensuring IT security measures. Heineken N.V. n Q Annual Report 2006 *r!7

Jaarverslagen en Personeelsbladen Heineken

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