QUALITY @ AB-INBEV

Jane Killebrew – VP Global Brewing & Quality John-Michael Holas – Global Director Brewing & Quality We are AB InBev

2 Global Brewing Operations

• Producing more than 500 MM hl

• 42 Agricultural & 27 Packaging • Vertical Operations

• >260 Breweries and SD Plants

• 10+ Technical Centers (TD)

• More than 650 DCs

• More than 70,000 Great Peopleb

3 Our Dream

Bringing people together for a better world Bringing People Together for Centuries Beer is at the center of everything we do… Great Beers with the Best Ingredients

“We cannot make fine malt out of inferior barley, and we cannot make fine beer out of inferior malt.” Adolphus Busch, 1894 Working Together with the Best Growers, Who Ensure the Highest Quality

“If the quality supply we need doesn’t exist, we will build it.” Nathaniel Davis, Brewmaster With Master Brewers, Who Take Great Pride in Their Craftsmanship

“I have dedicated my life to making sure that beer will be perfect – and to see a person really enjoy it means everything to me.” Peter Kraemer, Chief Supply Officer & 5th Generation Brewmaster Legacy of Quality Heritage

Adolphus Busch commenting on the success of the company:

“First of all, comes the quality of our product. We certainly have the best beer, and our principle to use nothing but the best material should therefore be lived up to….Anyone who does not uphold our motto: “Nothing is too good for the Anheuser- Busch beer” is not worthy of holding a commanding position in our great establishment…” (1900)

10 Our Brewing Heritage Dates Back More Than 600 Years Our Brewing Heritage Comes from All Parts of the Globe

12 How We Came to Be AB-InBev

1988 1995 1999 2000 2001 2007

1999 2004 2006 2012 2004

1852 2004 2011 2008

1922 2012

2014

1895 1993 1994 2001 2002 2005 2011 2016

2016 2016 2016 Our Brands- 800 Brands strong

1925 1876 1955 1986

1445 1888 1925 1959 1890 1906 1981 1988 1996

1889 1926 1240 1853 1900 1966 1982 1994 2002 1200 1850 1900 1950 2000 2017

1863 1913 1922 1994 1854 1895 1978 2002 2008 2015

1913 1864 1966 1983 1995 1929 2002 2012

1916

http://www.ab-inbev.com/our-brands.html Carlos Brito on Quality “The safety of our people, the quality of our products and the uniqueness of our consumer experience can never be compromised.”

“It takes years to build trust with consumers, with stakeholders. You lose that in one action, in one moment that you slip.” Commitment to Quality • Product quality is not necessarily everything that can be measured, which makes us ask the question: • What is Quality?? • Quality is fundamentally a relational process. It is a relationship, a commitment we build and sustain with our consumers by assessing, anticipating, and fulfilling their stated and implied needs. (Winder, 1993) • We do the right things and consumers trust us to do them without failure. Dream Statement for Quality “To Have the Best and Freshest Beers in the Market with Consumer Compliments Exceeding Complaints” Our dream connects our products with our passion for quality • Beer brings people together

• Beer crosses political, cultural, and language barriers

• Beer excites people! Quality to the Consumer Quality Always Excellence in Routine Execution

A management system (operational manual), inspired by Lean 6-Sigma that allows the systematic and sustainable improvement in our operations. ABI’s VPO Quality Pillar

The Quality Pillar • Excellence in quality for all products delivered to customers and final consumers • Total compliance with standard technical documents • Defined treatment of non-conformities and market complaints. • Best of Both approach – to ensure we capture all best practices • Quality system management is completed in accordance with AB InBev’s Quality Strategy originally based on ISO 9001:2000 and ISO 14001. Quality Senior Leadership Expectations

• Strive for sustainable results (Quality KPI’s) achieved through VPO means: -No check without consequence -Structured root cause analysis and problem-solving • Understand the technical and cultural obstacles in adopting “Quality Always” methods and address them decisively • Insist on transparency and data integrity to identify gaps • We must always face the brutal facts. Quality Pillar Governance

VP Zone GlobalVP Global VP Supply BrewingBrewing and & Quality External Audits

Zone Quality Global Brewing BOPs Director & Quality Team

Plant General Manager

Plant Quality Manager Packaging Quality

Example of Complexity Growth: SKU proliferation in the US in recent years Supply Chain Quality

Minimizing the impact of the supply Brewery chain related quality impacts: Quality Level • Handling During Transport • Broken bottles • Dented cans • Carton/carrier damage Customer • Storage Conditions Quality Level • Light exposure • Heat exposure • Freezing

Consumer Quality Level

25 Sensory Quality

Sensory evaluation is the most critical quality check - applied to every step of our process. • Raw materials, in-process samples, process aids • Beer contact materials, crown liners • Finished Products • Freshness • Shelf life for all products

Sensory evaluation is core to maintaining the Flavor, Consistency, Freshness and Drinkability of our products around the world. Commitment to Quality

Today’s consumers are better informed than any previous generation in human history.

• internet, satellite communications, wireless telephones and air travel available to almost everyone have made that possible; • what was regional or national social trends are now quickly becoming tendencies that affect and influence larger and larger groups of consumers across borders, languages and cultures. Quality – Final Thoughts

“Do or do not… there is no try.” ~ Master Yoda (Star Wars)

“Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skillful execution; it represents the wise choice of many alternatives.” ~William A. Foster Quality can never be a watermelon!!!

Looks green on the outside but really Quality must be green from RED on the inside! This does not align with our quality the inside out. culture. THANK YOU! Questions??