HEINEKEN’s AI Journey Andrea Diebold Head of Analytics Products Priyanka Srivastava BI Lead Commerce From siloed experiments to integrated products

Let’s test your HEINEKEN knowledge... How many international and local beer & cider brands does HEINEKEN have: A. 180 B. 300 How many breweries does HEINEKEN operate globally: A. 160 B. 80

To become the best-connected brewer Simplification & Automation Secure Digital Backbone Digitally Enabled Organisation Digital Route to Consumer Data Driven Insights & Foresights Digitally transforming our “front-end”... …whilst modernizing & simplifying the “back-end”

4 Commercial Mix Optimisation RMG Revenue Management Financial Forecasting & Decision Support Digitize R2C TETRIS Logistics optimisation Connected Brewery

5 HARMONIZED DATA PIPELINE ‘BUILDING HIGH QUALITY CENTRAL DATA FOUNDATION’ GLOBAL ANALYTICS Fast Track: unlock value for top products Product Suites Data Sources Key analytic products, prioritized on value Harmonized data for top products for rapid scalability Azure Datalake Long term harmonization effort, part of Digital Backbone SA P SE M SFC D … Mercur y AIDDA RM G SC Resilience C B … Harmonized Data (marts) Data Lake DataPrime – Data Lake Harmonized Data Pipelines Long Term: seamless data flows for touchless processes 1 2

6 Promotions Finances Brand Power Outlet commercial data Weather Nielsen Planogram MAXIMISE MARGINS ‘PERFECT PRICING, PRIME PRODUCTS, PROVEN PROMOTIONS’ Internal External RMG Optimal assortment Add Heineken 0.0, remove Tecate light Perfect price point Increase price for Lagunitas daytime by 2,5% Positive Promotion In-store Tiger promotion, 2 weeks, 10% off on a 6-pack DECOMPOSE ‘Understand Drivers’ OPTIMIZE ‘Prescribe Actions’ SIMULATE ‘Create Scenarios’ RMG

7 AI-DRIVEN PROMO MANAGEMENT ‘Minimize cost and maximise impact through promo optimisation’ RMG Create Baseline Decompose past promotions Simulate future promotions Prescribe optimized promotions Execution Input: Provide market specific constraints Input: Optimize algorithm through execution feedback and pre/post analysis

8 Sell-in volumes Media Spend (ATL) Trade Marketing (BTL) Campaigns/ Touchpoints Weather Nielsen Consumer & Events €Xm €Ym €Zm OPTIMIZE COMMERCIAL MIX ‘OPTIMIZE EVERY ABTL INVESTMENT AND ITS EXECUTION’ Internal External RESPONSE CURVES ‘Learn the relationship’ OPTIMIZER ‘Exploit the relationship’

9 Recommend Product Amstel Ultra Selzer in Bar Taco Churn-Risk Restaurant Flamengo is 85% likely to churn Out of stock Tiger crystal oos, Buy Heineken® Silver instead Best sales-route to follow for sales rep Lucy Internal External DIGITIZE ROUTE TO CONSUMER ‘MAXIMISE THE VALUE OF EVERY CUSTOMER INTERACTION’ Location (GPS) Traffic Volume Custome r Sales Rep Name Sales Orders Brand Invoices line items Revenu e Product Recommender

10 Sales Rep. Telesales (i.e. Customer Service) In-App Message Input: Define which input triggers are most important specific to your market Input: Optimize action / customer / channel interaction through constant A/B testing to maximise the value Consolidat e Triggers Quantify Value Optimise Channel Prioritise & Delegate Complaints Volume Trends Change Alert DIGITIZE ROUTE TO CONSUMER ‘MAXIMISE THE VALUE OF EVERY CUSTOMER INTERACTION’

Busines s Actionable BUSINESS VALUE CREATION Change Management and Agile Mindset Business Engagement Data & Analytics Skills Platform Technology to Scale Mind-set / Culture / Adoption People Data & Tech Environment High Quality Harmonized Data & Robust Governance ECOSYSTEM FOR ANALYTICS SUCCESS ‘DEVELOP ANALYTICS PRODUCTS THAT MAKE AN IMPACT’ GLOBAL ANALYTICS

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