F15 Top Line Plan & Key Focus Areas

1. F15 Top Line Plan & Key Focus Areas LONDON BUSINESS UNIT

2. Agenda • London Market Overview • Ops & Challenges • 3 year Review • F15 Growth & Key areas • Case Studies & Adding value

3. London Market Overview 23,000 On Trade outlets (20% of total UK) 500,000 trade staff in London alone Over 250 different styles of outlets London delivers 37%m to the overall world beer market 38% of MBUK on-trade Volume is in London

4. Opportunities and Challenges Ops Growing ops 11 Heads in London Czech Brands opportunity Hub of activations & support Best Insights Premium market MOT distribution base Build visibility Challenges Competitors focus areas Volatile property market Decision maker face-time Peroni has become the desired brand Czech brands ROS High investment competitor activity Outlets changing themes/CLOC Glassware attitude

5. Miller Brands Callage in London 1404 Face to Face support 1836 Stockists 41% MOT £70,000,000 Retail Sales Value in Draught 42% (£230m) of Total MBUK on-trade Value Dan Simon Vacant Harriet Bliss Kayleig h TAM £7.8m £10.2m £6.7m £7.6m £6.7m £8.5m £23m

6. 3 year review

7. F15 Growth £14,000,000 RSV Distribution Rate of Sale RETENTION

8. Distribution - New Draught Distribution

9. How we will win Camden Bars 50% success from top 25 priorities will deliver, 120 PNA, 70 PU & 100 Kozel Drive category appeal with RTM 70% Installations with key RTM Have 100% knowledge of new opening & refurbs 3 separate drives targeting 90% Restaurant & Hotel ppl coverage as minimum DELIVERING PROJECT MONZA WILL HELP ENSURE WE WIN AT THE FRONT LINE

10. F15 Growth £14,000,000 RSV Distribution Rate of Sale RETENTION

11. Rate of Sale & Account growth 88 OG Installs £5m Growth +5% ROS 5% removal <1yr 20% ITOS Increase 75% SAF Installs 153 Sessions

12. Perfect Serve Perfect serve demanded every time No objection or obstacle to hard to overcome Glassware can increase ROS by 15% Converting non-usage accounts could mean 500,000 more pints sold in F15 This could deliver an incremental, £2.2m RSV and £200k margin Replicated on Pilsner Urquell & Kozel 11.5m Pints sold in London per year 35% no glassware in F14 50% did not pour to line

13. Account losing potential £14,000 sales per year due to not using PNA Glassware – Simon Hamilton Quote from manager: “Customers have come to expect Peroni to be served in the branded glass, especially when they pay a premium price”. Jack Horner – W1T 7QJ – Fullers Managed: Uses PNA glassware • This is a premium account close to Oxford St. Use Glassware on every serve • Peroni is top seller at £5.04 a pint • Servito con Stile training done in March (mystery shopped and scored 100%) • Out of the top 4 selling brands, PNA is the only one which value is higher than it’s volume • Peroni best seller – taking up 25.4% of total lager volume • Using glassware to promote premium brands drive sales value for Jack Horner One Tun – W1T 4ND – Youngs Managed: Doesn’t use PNA glassware • This pub is around the corner from the Jack Horner and attracts very similar consumers • They use branded glasses for every beer on the bar, with the exception of Peroni. • Out of the top 4 selling brands, PNA is the only one which value is higher than it’s volume • Peroni 3rd best seller – taking up 19.8% of total lager • If one tun used branded glassware to increase PNA to same share a Jack Horner and They could increase sales by over £14000 Per Year £14,000 Extra sales per annum Customer quote: “It sounds silly, but I think Peroni tastes better when it’s poured in the proper glass – if it was a standard glass, I could be drinking anything”. ** All figures based on EPOS data

14. How we will ensure perfect serve Deliver 270 Servito con Stile effectively Deliver 225 Kozel and 315 PU training effectively Using case studies and glassware insights Demand Perfect Pour and seek quick resolutions to failed mystery shops within 1 week 1/4ly Forced Peroni Glassware drops with Servito messaging. Solutions to objections DELIVERING SERVITO CON STILE WILL GROW BRAND PREFERENCE AND CATEGORY APPEAL

15. F15 Growth £14,000,000 RSV Distribution Rate of Sale RETENTION

16. F14 Removals

17. Over 100 craft beers available on draught – focus is London RetentionThe competition removing us....or trying to Strong competitor brands focussing on London growth 43 craft breweries & 500+ craft pubs in London, and counting Tech Services issues Estrella – ‘the next Peroni’??? “I want every Peroni tap to be a Camden tap” Camden brewery MD Asahi operating in the trendsetter market “Miller Brands should be scared of us” Meantime marketing Poor ROS Lack of Support CLOC Big brewers ties and relationships with key RTMS National brewers jumping on the craft bandwagon

18. How we will use Craft to our advantage • Nobody really knows what craft is • Craft is growing from a small base, 55% volume and 61% value, we wont underestimate it. • Brooklyn & Meantime have 18% avg. ROS decline already • The value in craft is high, this can be used positively to maintain the value of trade and the value our brands offer • The ROS delivery of our brands enhances our value proposition • We must defend our space! craft is not a world beer substitute and a trade up so encourage movement of EDPL & other categories as preference • We share craft values in our brands. Love, care, passion and even better ingredients with added support!

19. Peroni doubles the ROS vs premium craft lager Meantime, equating to over £18,000 in cash margin Luke Mears, The London Fields Pub The London Fields pub is Punch tied and located near the Broadway market. Peroni is up against Meantime one of the leading craft brewers in London. They cost and sell at a similar price but Peroni has double the ROS. This is worth over £18,000 per year profit to the London Fields.. Despite the competition MBUK beers provide over £50,000 per year profit on the draught sales Week Commencing 18/11/13 based on average cost prices

20. How we will retain Sell with enhanced insights and category expertise 100% RTM meeting to discuss risks as an agenda point Use our brand strengths to sell into emerging trends like craft Activate & support with excellence RETENTION WILL ENSURE WE GROW BRAND PREFERENCE AND CATEGORY APPEAL

21. Case Studies

22. Case Studies – F15 • To present facts in an easy to understand document. • CDE Target – 1 per month • Case Studies should be: • Easy to Understand • Impactful – use the STAR model (Situation, Task, Action, Result) • Based on actual data (EPOS) – making them credible • Useful for CDE’s & ADM’s when presenting to customers • Used to overcome objections/’get over the line’ • Useful for the business (other parts of the business see your case studies and USE them)

23. Pilsner Urquell Wooden Barrel Sampling increases ROS by 81% The Albany • Pilsner Urquell was averaging 88 litres per week • Pilsner Urquell was upgraded to sit on both bars, CDE support was given with displays being built, with ROS increasing to 105 litres a week. • The wooden Barrel sampling was held at the beginning of May, and was a huge success, with over 35 pints being sold in under an hour • ROS has increased ever since and increased to an average of 160 litres a week for the month of June. • The good relationship with the outlet has also allowed us to upgrade Kozel to branded tap handles

24. Peroni holds 41% share despite 70p price increase over 6 months • Simon Hamilton: CDE North West London • Marquis of Westminster EIP; SW1V 1RY • ‘Pimlico’s Village Pub’ focussing on premium food and drink • In the traditionally slow month of November, Peroni has maintained 5.7 kegs a week • This account has continually increased the price of all alcohol since a refurbishment earlier this year – Peroni has increased by 15% in price over 6 months • The key to success has been the consistent delivery of a perfect serve in branded glassware that customers now expect – management appreciate the importance of presentation and the fact that Peroni is a ‘worth paying more for’ brand • Peroni generates almost twice as much revenue as it’s nearest competitor and sets it up very well for the busy Christmas period • Other MBUK products compliment the premium drinks selection with PU and Kozel both outperforming rival Czech beer, Staropramen. In November, MBUK products delivered 69% of lager value sales. “It seems that no matter what price we charge for Peroni, people will continue to pay for it – it’s a great position to be in!” -Matt, GM

25. Case Study Effectiveness - Wins Gained by Using Case Studies • Youngs Kozel Activations; used to gain activation in DoW resulting in over 300% increase of Kozel ROS over 6 weeks. • The Betsy Smith; used to win Aspirational Pub Co. (4 Kozel, 2 PU and 3 Peroni installs). • Il Mascalzone, over 10 draught installs in Italian restaurants gained from case study showing increased profit from draught • Dion Case Study used over 20 times to sell draught in where accounts already stocking PNA PPLor vice versa • Used to overcome objection in over 5 accounts to gain an installation where account needed to charge more than £5 per pint

26. Case Study Project – Topics Covered • The advantages of Font Movement/upgrades • Kozel Success Stories • Pilsner Urquell ROS increases (Wooden barrel samplings and incentives) • Peroni Dual Stocking • Added Value through CDE utilisation • Added Value through MBUK Install(s) • POS impact on ROS for Kozel & PU • Kozel shortlist Application – Increase of Kozel ROS due to successful activation • Peroni maintains high ROS whilst commanding premium price

27. Case Study Project – Where are they used? • ADM’s and CDE’s use them every day • Marketing Spend Effectiveness Meetings • RTM/ADM Meetings • RTM Head Office meetings • MOT Support • Other regions – best practise • Trade Press • Club Peroni

28. Grow, Perfect Serve & Protect