tiï O Q, To the Shareholders (continued) Meetings and activities of the Supervisory Board Committees Preparatory Committee Audit Committee Report of the Executive Board Report of the Supervisory Board During 2018 the Supervisory Board held seven meetings with the Executive Board. The agenda regularly included subjects such as the development of the Company's strategy aimed at long-term value creation as well as the manner in which the Executive Board implements the Company's strategy, the Company's culture to ensure proper monitoring by the Supervisory Board, the Company's financial position, the results of the Regions and operating companies, acquisitions, large investment proposals, the yearly budget, management changes and the internal risk management and control system. The external auditor attended the meeting in which the annual results were discussed. In 2018, specific attention was given to the following: The Supervisory Board had a two-day meeting with the Executive Board to discuss the Company's strategic priorities and main risks of the business associated with it in depth. During this meeting, members of the Executive Team presented their respective strategic topics and risks per region or function, as the case may be. The Supervisory Board visited Addis Ababa, Ethiopia, where the Management Team of Heineken Ethiopia, the Managing Directors of Bralirwa (Rwanda) and Heineken South-Africa and the Africa, Middle East and Eastern Europe Region presented an update on business performance. In addition, external guest speakers provided an overview of macro-economic and general business developments in Ethiopia. During the year, several representatives of senior management and the Executive Team were invited to give presentations to the Supervisory Board. In 2018, the following subjects were presented in more detail: Sustainability (Brewing a Better World) Human Resources and succession planning (including the remuneration of the members of the Executive Team) Global Information Systems, including Cyber Security Regular Executive Sessions were held without the Executive Board being present. The purpose of these sessions was to evaluate the Supervisory Board meetings and, where relevant, further reflect on particular subjects discussed at the meetings. One Executive Session was dedicated to the evaluation of the Supervisory Board relating to the performance, working methods, procedures and functioning of the Supervisory Board, its committees and its individual members as well as the functioning of the Executive Board and its individual members. These evaluations were conducted on the basis of individual interviews of the Supervisory Board members with the Company Secretary. The conversations covered topics such as the composition and expertise of the Supervisory Board, access to information, frequency and quality of the meetings, quality and timeliness of the meeting materials, and the nature of the topics discussed during meetings. The responses provided by the Supervisory Board members indicated that the Board continues to be a well-functioning team. An induction programme was set up for Mrs. Helmes. As part of the programme, Mrs. Helmes had meetings with several senior executives and visited the brewery in Zoeterwoude, the Netherlands. The Chairman of the Supervisory Board met frequently with the CEO, among others, to prepare the Supervisory Board meetings. Heineken N.V. Annual Report 2OI8IA9 Financial Statements Sustainability Review Other Information The Supervisory Board has five Committees: the Preparatory Committee, the Audit Committee, the Selection Appointment Committee, the Remuneration Committee and the Americas Committee. The terms of reference for the Committees are posted on the Company's website. Composition: Mr. Wijers (Chairman), Mr. de Carvalho, Mr. Das and Mr. Fernandez Carbajal. The Preparatory Committee met seven times. The Committee prepares decision-making by the Supervisory Board on matters not already handled by any of the other Committees, such as in relation to acquisitions and investments. The Chairman of the Executive Board also attends the Preparatory Committee meetings. Composition: Mr. Huët (Chairman until 31 December 2018), Mrs. Helmes (Chair as of 1 January 2019) and Mr. Astaburuaga Sanjinés. The Audit Committee met four times. The members collectively have the experience and financial expertise to supervise the Executive Board in its activities in relation to the publication of financial statements and operation of the internal risk management and control systems, including the risk profile of the Company. The Executive Board attended all meetings, and so did the external auditor, the Executive Director Global Audit, and the Senior Director Global Accounting and Reporting. The Executive Director Global Audit has direct access to the Audit Committee, primarily through its Chairman. During the year, the Audit Committee met once with the external auditors and once with the Executive Director Global Audit, in both instances without management being present. In addition, the Chairman of the Audit Committee and the Executive Director Global Audit held regular update meetings during the year. The Committee supervises the activities of the Executive Board with respect to the publication of financial information. The Committee reviews, in the presence of the Executive Board and the external auditor, the appropriateness of the half-year reporting and the annual financial statements, focusing on: The decisions made on the selection and application of accounting policies. The reliability and completeness of disclosures. Compliance with financial, non-financial and other reporting requirements. Significant judgements, estimates and assumptions used in preparing the reports in respect of, among others, accounting for acquisitions and divestments, the annual impairment test and determining the level of provisions. At the beginning of the year, the Committee reviews the audit plan of the external auditor as well as the internal audit plan. The Committee focuses mainly on the scoping, key risks, staffing and budget. During the year, the Committee reviews the reports of the external and the internal auditor. Furthermore, the Committee in 2018 discussed recurring topics, such as: The effectiveness and the outcome of the internal control and risk management systems, as well as changes made and improvements planned to these systems.

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