Contents Overview Report of the Executive Board Report of the Supervisory Board Financial statements Other information Risk category Risk description What we are doing to manage the risk Industry consolidation Marketing and Brand Management Disruptions in the supply chain Social media We might fail to successfully participate in industry consolidation and miss opportunities to acquire target companies. Specific risks are: Competitive disadvantage Missed opportunities Overpaying Unsuccessful business integration Inability to further build our brands due to lack of consumer insight, unsuccessful innovations and ineffective use of social media. The Company may not be able to defend its intellectual property rights. Specific risks are: Limited or unsuccessful innovations Failure to use opportunities of social media Social media can work as an accelerator of other risks Disruptions in the supply chain may lead to inability to deliver key products to key customers, leading to increased costs, lower volumes and lower market shares. Specific risks are: Failure of IT systems Factors beyond our control like natural disasters, political instability, military conflicts Social media has become increasingly important in the beverage sector. We may not be able to use the opportunities afforded by social media to manage any related risks (e.g. legal drinking age restrictions, IT or information security). We may not be able to control information or respond in a timely manner. Effective competition in relation to pricing, quality and reliability Make use of cost advantages via economies of scale Strong due diligence processes Implementation of a common business integration process Strengthened Commercial Organisation Central marketing academy Investments in consumer and market intelligence Strengthened innovation organisation to respond to industry changes Effective use of social media and consumer and marketing intelligence Investments in protecting brands, including the registration of trademarks, anti-counterfeit measures and domain names Business continuity plans Implementation of back-up scenarios Monitoring of the solvency of customers and suppliers Supplier performance measurement system to identify and monitor high risk supply areas, and where necessary, the ability to intervene Global insurance policies Attention to effective use of social media and consumer and marketing intelligence Monitoring social media platforms by various departments (marketing, corporate relations, legal) Heineken N.V. Annual Report 2013 25

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2013 | | pagina 26