O A Our business priorities (continued) Deliver top line growth Our strategy remains the same: to lead the premium segment in beer and cider across the world and leverage the strength of Heineken®, supported by a strong portfolio of international premium and local brands. Our goal is to be the number one, or a strong number two, in the markets where we compete with a full brand portfolio. Heineken® and international brands growth Consumer trends and behaviours Continue to shape the cider category E-commerce and digital marketing Our brands and e-commerce are the drivers of our top line growth... Our global brand - Heineken® Our international brands portfolio Our international craft and variety brands Our low- and no- alcohol brands Our global cider portfolio Our e-commerce and digital marketing Introductio^^^^^^^^^^H Report of the Executive Board^^^^^l Report of the Supervisory Board In 2018, the Heineken® brand continued to outperform. Volumes grew strongly by 7.7%, which is the best performance in over a decade. Our international brands portfolio is comprised of a strong group of premium brands that complements Heineken® and taps into consumer appetite for diversity, new taste and brand experiences, and unique stories. These brands are Amstel, Desperados, Sol, Tiger, Tecate, Red Stripe, KruSovice and Birra Moretti. They continue to be a strong driver of premium revenue growth with double digit growth outside their home markets. Consumer tastes and preferences continue to evolve and shape our industry. The most noticeable change has originated from the popularity of craft beer, but more gradual changes have emerged from changing demographics and a growing awareness of health and wellbeing. Craft and variety is an important category for us that complements the growing international premium beer segment. It has put beer at the centre of the conversation among a broader group of discerning consumers. Around the world, consumers are seeking more variety and our consumer-oriented approach has increased our understanding and accelerated the international growth of our craft and variety range. This is led by iconic international craft brands such as Affligem, Mort Subite and Lagunitas, and supported by craft line extensions such as Brand IPA in the Netherlands, and Birra Moretti Regionale in Italy, strong local craft brands such as Beavertown in the UK and La Cibeles in Spain. The relatively recent trend towards health and wellness in the developed world is driving growth in low- and no-alcohol drinks. Consumers are demanding more variety and we continue to innovate with low- and no-alcohol beers, Radlers, dark and clear malts and malt-based energy drinks. Volumes in our low- and no- alcohol portfolio increased mid-single digit, delivering 13.1 million hectolitres in 2018 (2017: 12.5 million hectolitres). In Europe, volumes grew high single digit. The trend towards variety in flavours and tastes means cider is the fastest growing category in alcohol. Albeit still small in size, we are shaping the category i n many markets where modern cider is new, such as in Spain, Vietnam and Mexico. We are strengthening our position in more developed cider markets such as South Africa and Ireland with our global brands Strongbow and Orchard Thieves. Active in over 40 markets, our consolidated cider volume increased double digit, including the UK, to reach 5.6 million hectolitres (2017: 4.9 million hectolitres), with more than 2 million hectolitres outside the UK. E-commerce and innovation are important for us. As new developments affect the shape of the beer industry's route to market, being close to the consumer and to customers is critical. We are creating new opportunities through our B2C and B2B e-commerce platforms (see page 15) and other digital commerce initiatives. Financial Statements Sustainability Review Heineken N.V. Annual Report 2018^ 09 Other Information HEINEKEN has more than 300 brands around the world. Over the following pages we take a closer look at just some of the brands which are continuing to deliver top line growth for the business. ttffweuf MORT SL'BiTO Further information about our brands at: theHEINEKENcompany.com/Brands

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 10