GENDER PAY GAPR E P O R T 2 0 1 9

This report details ourApril 2018 to April 2019 results

Since the Government introduced the requirement for businesses to report on their gender pay gap in 2018, we’ve been working hard to close our gap.

Since last year, our mean gender pay gap has dropped from 12.9% to 9%, and our median gender pay gap has dropped from 7.8% to 2.5%. The proportion of women in our upper pay quartile has increased from 24% to 30%. We’ve also seen the mean and median bonus payment gaps reduce – they’re now sitting at 28.3% and 13.8% respectively.

One of the reasons for these reductions is the inclusion of a number of business areas in the reporting that were previously omitted as they were aligned to a different legal entity. Now every HEINEKEN UK colleague is accounted for in our reporting, giving us a much more accurate picture of our gender pay gap.

Another important driver is the work we’re doing to make HEINEKEN UK a truly inclusive and diverse organisation. We’ve made some excellent progress towards this over the past two years – the introduction of a number of I&D Task Forces, the recruitment of over 60 I&D Ambassadors across the business, significant changes to our Parental Leave Policies and the introduction of Smarter Working. All of these help us tackle the gender pay gap. And involving people from right across the organisation in our approach to I&D, has in itself started to change our culture for the better.

And so our journey continues – our focus now is on becoming an inclusive and diverse employer in every sense and continuing to embed the great changes we’ve started to make.

Best wishes

Simon AmorInterim Managing Director, HEINEKEN UK

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The UK Government’s Gender Pay Gap Regulations require companies to report their gender pay gap for all legal entities in Great Britain with more than 250 employees, with the aim of creating transparency and encouraging employers to explore any gender pay gaps revealed by the process.

The gender pay gap shows the difference in average pay between women and men. It’s different to equal pay, which relates to what women and men are paid for the same or similar jobs or work of equal value.

How we calculate the MEAN difference

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Number of male employees

Number of female employees

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Mean male

average pay

Mean female

average pay

Mean hourly

pay gap=The % difference

How we calculate the MEDIAN differenceLowest hourly pay

Median hourly

pay gap=

Median hourly pay Highest hourly pay

The % difference

The mean gender pay gap is the percentage difference between the hourly pay of all male employees divided by the total number of males, and the hourly pay of all female employees divided by the total number of females.

If all female colleagues were lined up in order of hourly pay and all male colleagues were also lined up in order of hourly pay, the median pay gap is the percentage difference between the hourly pay of the middle female and the hourly pay of the middle male.

WHAT IS THE GENDER PAY GAP AND HOW IS IT CALCULATED?

Why the difference?Because different jobs pay differently and the number of men and women performing these jobs varies, a gender pay gap can exist. For example if there’s a higher proportion of men in senior roles and/or a higher proportion of women in junior roles the gender pay gap will be bigger.

Why is gender pay gap reporting important?Gender pay gap reporting is an important step forward in putting a spotlight on where companies may have gender imbalances within their workforce, to assist them in understanding what’s driving it and importantly, what to do to improve it.

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Pay QuartilesThis shows the proportion of males and females in each pay quartile, ranging from the lowest hourly rate of pay to the highest. Each quartile has an equal number of colleagues.

* The 2019 Annual Survey of Hours and Earnings (Office for National Statistics).Data as at 5th April 2019. Figures in brackets are our 2018 results.

our mean gender pay gap

our median gender pay gap

This is lower than the national average of 17.3%*

9.0% 2.5%

our mean bonus gap

our median bonus gap

28.3% 13.8%

HOW DO WE MEASURE UP?

Lower Q1 Lower-middle Q2 Upper-middle Q3 Upper Q4

59% (58%)

41%(42%)

18%(16%)

82%(84%)

26%(23%)

74%(77%)

30% (24%)

70%(76%)

Female

Male

MALE83%

FEMALE84%

% of colleagues receiving a bonus

payment

(12.9%) (7.8%) (38.5%) (23.51%) (77%) (74%)

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The reduction in both our pay and bonus gaps, and the increase in the proportion of women in our upper pay quartile, is partly as a result of a greater focus across our business on gender pay, and Inclusion & Diversity more broadly (as can be seen on page 6).

Another reason for the reduction is the inclusion of a number of business areas in the reporting that were previously omitted as they were aligned to a different legal entity. Now every HEINEKEN UK colleague is accounted for in our reporting, giving us a much more accurate picture of our gender pay gap.

While we’ve made good progress, we acknowledge that pay gaps still exist. This continues to be driven by the gender make-up of our workforce, which is 29% female and 71% male. There’s a larger proportion of men in our breweries and commercial areas, where roles typically attract a premium through shift payments and higher levels of bonus.

A pay gap also exists because 70% of our middle and senior leadership population were male in April 2019, with higher levels of remuneration attached to more senior roles.

WHAT DO OUR RESULTS MEAN?

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In 2018 we launched our Inclusion & Diversity (I&D) Strategy, which sets out our ambition to be a truly inclusive organisation where we all feel we belong. Since then we’ve delivered a number of changes. Now our focus is on embedding these.

WHAT ARE WE DOING TO CLOSE THE GAP?

Smarter Working Last year we launched a new approach to flexible working. The introduction of ‘Smarter Working’ has helped us change our mind-set when it comes to how we deal with requests for flexible working.

Smarter Working means flexibility on how, where and when our colleagues work. It can be either an informal arrangement or formally agreed changes to a contract. We want all colleagues to find the right work life balance that fits around their individual and also those of the business.

We’ve celebrated and shared colleague stories of where Smarter Working is happening in order to challenge the long-held perception that working flexibly is ‘only for mums’ and to inspire other colleagues to embrace this new way of working.

Enhanced Maternity, Paternity and Shared Parental Leave Policies One of the ways to achieve greater gender equality in the workplace is to remove the barriers that stop men taking on more responsibility for raising children. That’s why in 2019 we significantly enhanced our parental leave policies, giving colleagues more choice and flexibility when balancing childcare commitments.

We increased our Maternity/Adoption Leave Policy from 6 weeks full pay and 33 weeks half pay to 13 weeks full pay and 26 weeks half pay. We then matched our Shared Parental Leave Policy to these enhanced terms, significantly improving the offering for both our male and female colleagues. We also increased the number of full pay weeks for paternity leave.

At HEINEKEN we recognise our parental leave policies need to reflect the changing landscape when it comes to child rearing and so we’ll keep them under review.

Maternity Buddy NetworkWe’ve introduced a buddy network to support women who go on, or are returning, from maternity leave. It’s a place where they can share their experiences with other women going through the same stage in their life. It helps reduce some of the anxiety new mums can feel about taking a break in their career and makes the transition back to work more successful.

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WHAT ARE WE DOING TO CLOSE THE GAP?

Women in LeadershipSince the last gender pay gap report, we’ve seen a 6% increase in women in our upper pay quartile. While we recognise that it will take time to increase the ratio of women in senior positions, we’re committed to encouraging more women to take on senior roles in the business through our succession planning and recruitment processes.

Gender Task ForcePrevious task forces have led to the introduction of Smarter Working and revised Parental Leave policies and so we’re taking this approach again to look at the wider topic of Gender. The task force will be made up of volunteers from across the business as we know the potential impact is most powerful when we’ve colleagues, who are passionate about the topic, driving the plans.

RecruitmentDuring our recruitment process we use technology to analyse our adverts, ensuring the words and language we use are attractive to both men and women.

We also have a diverse range of colleagues who represent the business as our Faces of HEINEKEN on job adverts, social media posts and recruitment campaigns. We ensure we use a balance of both male and female Faces, particularly when recruiting for more traditionally male roles.

As standard in our job adverts we highlight our approach to Smarter Working.

Hiring managers are supported to have gender balanced selection panels to ensure diversity of perspective. We also provide them with an interactive digital learning e-book, which covers unconscious bias in the recruitment process.

And we ensure starting salaries are applied consistently for new male and female colleagues.

Statutory Disclosures

Legal Entity: HEINEKEN UK Ltd

Gender Pay Gaps:

Difference in hourly rate of pay – mean 9.0%

Difference in hourly rate of pay – median 2.5%

Difference in bonus pay – mean 28.3%

Difference in bonus pay – median 13.8%

Employees who received a bonus payment:

Males who received a bonus payment – 83%Females who received a bonus payment – 84%

Employees by pay quartile:

Upper quartileMale – 70%Female – 30%

Upper middle quartileMale – 74%Female – 26%

Lower middle quartileMale – 82%Female – 18%

Lower quartileMale – 59%Female – 41%

DeclarationI confirm the information and data reported is accurate as of the snapshot date 5th April 2019, and in line with the UK Government’s Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Jane BrydonHR Director HEINEKEN UK