Risk Management (continued) Main risks Regulatory changes related to alcohol Economic and political environment Distribution channel transformation O Q, Introductio^^^^^^^^^^H Report of the Executive Board^^^^^l Report of the Supervisory Board The following risk overview highlights the main risks that could hinder HEINEKEN in achieving its strategy and business objectives. We recognise that this is not a full overview of all risks and uncertainties that may affect the Company. As new risks emerge and existing immaterial risks evolve, timely discovery and accurate evaluation of risks are at the core of HEINEKEN's risk management system. The financial risks are reported separately in note 11.5 to the Financial Statements on page 99. The Statement of the Executive Board is included in the Corporate Governance Statement 45. The way we manage our Business Conduct and Human Rights risks are further detailed out in the Sustainability Review section of our annual report on pages 119-154. What could happen The topic of alcohol and health is under scrutiny in many markets. This may prompt regulators to take further measures limiting HEINEKEN's freedom to operate, such as restrictions or bans on advertising and marketing, sponsorship, availability of products, and increased taxes and duties or the imposition of minimum unit pricing. These could lead to lower overall consumption or to consumers switching to different product categories. Recent developments Restrictive measures on alcohol consumption and sales continue to be taken by governments across all four regions. Continued focus by WHO, OECD, UN and the EU on alcohol as part of the Non-Communicable Disease agenda could lead to additional restrictions which would impact HEINEKEN's business across multiple geographies. What we are doing to manage this risk Responsible consumption is one of the priorities of HEINEKEN's Brewing a Better World sustainability programme. Using the power and reach of its brands, HEINEKEN strives to make responsible consumption aspirational and works closely with local governments, NGOs and specialists to prevent and reduce harm caused by abuses such as underage drinking or drinking and driving. We are expanding consumer choice by providing low- and no-alcohol brands. Explore Further: - Advocating responsible consumption, pages 120, 134-137. Financial Statements Sustainability Review Heineken N.V. Annual Report 2018 Other Information What could happen Throughout the world, local or regional economic and political uncertainties could impact our business and that of our customers. In particular, the risk of an economic recession, change of laws, trade restrictions, inflation, fluctuations in exchange rates, devaluation, nationalisation, financial crisis, or social unrest could adversely affect our revenues and profits. What could happen In order to maintain position and profitability, our customers are consolidating, either through acquisition or through buying alliances. This concentrates increased buying power into fewer hands. Next to this, digital disruption is creating new routes to consumers, increasing the value and power of owning customer and consumer data. Recent developments Political risk has expanded beyond emerging markets to become a permanent element of the economic landscape. The changed US attitude towards international free trade and Brexit have created significant uncertainties. Agility has become a priority to enable businesses to navigate subsequent changes in laws, currency movements, import restrictions, scarcity of hard currencies, commodity pricing and their impact on the Company's profit. What we are doing to manage this risk HEINEKEN has set up various tools to limit the impact of such events on its business such as supplier management, short-term liquidity management, tight foreign exchange monitoring, prudent balance sheet measures, and scenario planning. We have monitoring mechanisms in place globally and locally, to allow us to monitor, report and engage proactively on political risks. For events which could threaten the continuity of the business, contingency plans are in place. Recent developments New buying alliances are being negotiated, and cross border acquisitions continue. The major on-line retailers are moving to an omni-channel strategy, owning on-and-offline retail. The race to bring voice assistants into every home is on. Electronic point of sales systems are increasingly used to collect and leverage customer and consumer data. What are we doing to manage this risk HEINEKEN will continue to invest strongly in building brands, and the importance of strong brands only increases in the face of retail disruption. We are also implementing a comprehensive set of commercial digital initiatives to strengthen our connection with consumers and customers, and ownership of key data. Lastly, we are investing in capabilities for servicing sophisticated and increasingly digital customers. Explore Further: - Deliver top line growth, pages 9-15.

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