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Welcome to the World of

Presentation to AGRIFORUM

Cape Town June 2009

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1. Our Product: Beer

2. Our Market Environment

3. Heineken and Society : Agricultural projects Africa

4. Heineken South Africa

headingAll Natural Ingredients

• Nature provides us with beer’s 4 basic ingredients

• All these ingredients can be varied in endless combinations

• Some estimate there are around 40.000 different beers in the world!

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• No Additives; No Preservatives

• No Fat

• Vitamins B 1, 3 and 11

• Minerals

• Antioxidants

Our Beers are 100% NaturalStorehouse of Nutrients

headingRelatively Low in Calories

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1. Our Product: Beer

2. Our Market Environment

3. Heineken and Society : Agricultural projects Africa

4. Heineken South Africa

headingHeineken’s five operating regions

•* = the part of the total group volume that relates to beer

125 breweries in more than 70 countries

56,000 employees

Group Beer Volume*: 162 million hl (2008)

headingThe brewing industry: top 10

headingHeineken®The International Leading Brand

headingContent

1. Our Product: Beer

2. Our Market Environment

3. Heineken and Society: Agricultural projects Africa

4. Heineken South Africa

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We work hard to put social and environmental sustainability at

The heart of the actions that support Heineken’s priorities.

Our Role in Society

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1. Energy

2. Water

3. Safety

4. Agriculture

5. Supply Chain Responsibility

6. Responsible Beer Consumption

7. Our Impact on Developing Markets

Sustainability Agenda: 7 focus areas

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Secure the quality and availability of raw materials in a sustainable

way:

And try to localize as much as possible

4. Agriculture

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a new development assistance model: a way to combine the

strengths of the 3 sectors

helping reach the Millennium Development Goals

create stakeholder alliances along the value chain

What are Public Private Partnerships, what do they offer?

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Technical and managerial expertise

Access to (private) financial resources

Innovation is part of the culture

Long-term interest in the market

Ability to organise sustainable supply structures

Strengths of the Private sector

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Ability to provide supportive regulatory environment

Ability to mobilize resources for improved infrastructure

Ability to maintain law and order

Ability to “upscale” sucessful pilot projects

Strenghts of the Public sector

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Ability to reach marginal groups/consumers/suppliers

Commitment to food security, human rights

Ability to mobilize support from public sector and private

charitable sources

Ability to organize communities/reducing transaction costs

Strenghts of the NGO sector

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Burundi - Brarudi - Sorghum

Rwanda – Bralirwa – Maize

DRC - Bralima – Rice

Egypt – ABC – Barley / Malt

Algeria – Tango – Barley / ( Malt )

Sierra Leone – SBL – Sorghum

Ghana – GBL – Sorghum

Nigeria – NBPlc – Sorghum / Malt

RSA – Sedibeng – Barley / Malt

Agriculture projects Sorghum, Mais, Rice, Barley

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SORGHUM.

The agro project is assisted by EUCORD for collaboration with

the public and private agro sector in Burundi as well as countries

that are willing to subsidise such projects.

Recently a subsidy was granted by the Dutch Government.

Aim is to be able to produce 250 k hl.of 100% sorghum beer.

5000 farmer families involved.

$ 1.5 m. injected in rural communities.

5000 children access to primary education.

20 schools receive support.

Burundi - Brarudi

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Maize.

Minimex delivers maize grits to the brewery. The installations are

new and state of the art.

To secure quantity, quality and GMO free maize Bralirwa has put

up a company Bramin together with Minimex.

300 ha is available to produce maize this year.

Extra funds are applied for from the EU. a.o.

Rwanda - Bralirwa

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Rice.

Project also with assistance from Eucord.

Schokland funds were applied for and obtained.

Progress. In 2008 the rice project was installed in 2 provinces. In

2009 up to 7 provinces.

In 2008 – 1.600 T. Need 9.000 T.

In 2009 – 6.300 T. Need 11.000 T.

In 2010 – 10.000 T. Need 13.000 T.

Total budget for 3 years 6 m.US $. One third subsidised.

DRC - Bralima

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Sorghum.

NBPlc has decades of experience with sorghum growing and

brewing since the ban on malted barley imports in 1988.

Sorghum is produced by many small scale farmers through

Regional Production Coordinators. ( 50 farmers per RPC )

NBPlc requirement = 60k Tons of malted- and 15k.raw sorghum.

NB provides technical, technological support and a guaranteed

market at competitive prices.

In cooperation with several institutes hybrids are developed with

good growing/malting and brewing qualities. Ambition is to reach

a yield of 5 tons /ha. Present yield is 2 – 2,5 t./ha.

Nigeria - NBPlc

headingNigeria - NBPlc

2006 5,500 hectares

2007 8,500 hectares2008 10,000 hectares2009 12,000 hectares

2010 (plan) 25,000 hectares

Most farmers are small scale – ca 2 hectares per farmer.

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Barley / ( Malt )

The RSA has large barley growing potential. It’s grown in the

Western Cape on dry land and in the Northern Cape under

irrigation

Farmers work in cooperations that supply breweries / malteries.

A major South African cooperation is investigating a venture with

Sedibeng, building a maltery in proximity to the Sedibeng

brewery.

Alternative variety are considered.

RSA - Sedibeng

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Infrastructure

Availability and quality of water

Security of crops

Continuity

Prices / costs ( versus world market prices )

Weather changes.

Competition with the food chain.

Vulnerability / Threads to Agro projects Africa.

headingContent

1. Our Product: Beer

2. Our Market Environment

3. Heineken and Society: Agricultural projects Africa

4. Heineken in South Africa

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Heineken’s 1st export of beer to Africa - 1900

1st local operation in Central Africa - 1923

Expansion in Central Africa

-DRC [1923] / Burundi [1956]

-Rwanda [1959] / Congo [1960] / Lubumbashi (2008)

Local operation West Africa

-Nigeria [1946] / Ghana (1962) / Sierra – Leone [1963]

Growth/Expansion – MENA

-Egypt / Gulf / Lebanon / Tunisia / Algeria

Namibia (2004)

South Africa (2006)

Historical Landmarks

iHistorical landmarks

headingBeer volume by region

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Top 5 Breweries in Africa

5 %

18 %

2 7 %

16 %

3 3 %

3 %

11%

17 %

4 8 %

2 0 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Others

Guinness

Castel-BGI

SAB Miller

HeinekenInc South Africa

Ex South Africa

Competitive situation in Africa

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