In addition, we continued to optimise costs, leverage our size, and improve the efficiency of our Financial Shared Services and Global Procurement. Our operations improved productivity despite increasing complexity brought about by an enlarged product offering and increased personalisation requirements from retailers. Efficiency and productivity targets are tightly linked to our Brewing a Better World strategy. In 2016, we decreased our water consumption to 3.6 hl/hl from 3.7 hl/hl in the previous year. These savings would be equivalent to more than 1,000 Olympic-sized swimming pools of water. Our CO2 emissions in production decreased to 6.5 kg CO2-eq/hl, down from 6.7 kg CO2-eq/hl in 2015. This reduction is similar to the emissions saved by installing nearly 300,000 solar panels. We are on track with most of our 2020 Brewing a Better World commitments and during 2017 we will define our 2030 ambitions in line with the UN Sustainable Development Goals (SDGs) and COP21. In the last seven years, since we kicked off Brewing a Better World, our CO2 emissions have decreased 5%, despite our business volume growing by 52%. But this is not enough. As a result of the Paris Agreements of COP21, we will redouble our efforts in emission reduction. Preparing for the future requires above all great leaders that can do more than drive excellent financial performance. In 2016, 150 of our most senior leaders attended a week-long residential course at Harvard Business School. We are rolling out a renewed guide of Leadership Expectations and a new Inclusion and Diversity Platform will help us to better leverage our global talent pool. HEINEKEN is a very inclusive company and we see diversity as a richness. Five nationalities are represented in our Supervisory Board, seven in our Executive Team and 53 in our senior leader community. We now aim to increase our focus on gender diversity. Our values guide how we work and conduct our business and we support the principles of the OECD guidelines. This is the first year we have produced a joint annual and sustainability report. We feel strongly that our aim is to run the business sustainably throughout our operations. Disclosing the progress of Brewing a Better World together with our financial results is the right thing to do going forward. In 2017, economic conditions are expected to remain volatile and we have assumed a negative impact from currency comparable to 2016. We expect further organic revenue and profit growth. Excluding major unforeseen macroeconomic and political developments as well as the impact of proposed acquisitions in Brazil and in the UK, we expect continued margin expansion in 2017 in line with the medium term margin guidance of a year-on- year improvement in operating profit (beia) margin of around 40bps. Capital expenditure related to property, plant and equipment should be slightly below EUR 2 billion. I end this letter by expressing my gratitude to our customers, partners and stakeholders. I especially want to thank our employees for their dedication and effort, they are the backbone of these results. I am looking forward to working with all of you in 2017. no Heineken NV. Report of the Report of the Financial Sustainability Other 03 Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information Jean-Francois van Boxmeer Chairman of the Executive Board/CEO Amsterdam, 14 February 2017

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