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OUR 2025 SUSTAINABILITY GOALS

SMART AGRICULTUREAB InBev is committed to ensure that 100% of our direct farmers are skilled, connected and financially empowered by 2025.

AB InBev cares about the highest quality of our ingredients - barley, corn, rice, hops, and other crops, which are the foundation of our beer. We also care about our farmer communities and we are working to help farmers both big and small gain access to the latest research in crop varieties, experiment with ground-breaking practices in the field, and harness the power of technology to improve their crop yields and their lives. While we want to increase our yields and resource efficiency, we want to improve smallholder farmer livelihoods and ensure that they are able to provide food security for future generations.

SKILLED• Creation of over 2 600 jobs over a period of 5 years up until 2022 and

the development of 800 emerging maize growers.• Deploying teams of skilled agronomists in South Africa, Zambia, Tanzania and

Uganda to provide technical support and training to our direct farmers• Supporting local farmers by localising the growth of Corona limes in South Africa• We are working with our Zambian barley growers through our research and agriculture teams to

help them produce high-quality malt barley while reducing their environmental impact • We are partnering with organizations to expand farmer training programs, including partnering

with TechnoServe to provide in-field training to more than 2000 farmers in Uganda• We are expanding our agricultural research and development activities across Africa, increasing investment behind

the development of improved crop management techniques and varieties of barley, sorghum and cassava

FINANCIALLY EMPOWERED• Providing preferential production loan financing for our emerging growers of barley, maize and hops in South Africa• Providing seed and other inputs to smallholder growers in Tanzania and Uganda,

which are repaid through the delivery of their harvested crops• Partnering with a technology start-up in Zambia to introduce an SMS enabled block-chain tool to smallholder

cassava and sorghum growers, so they can begin to develop their economic passport for future access to financing

CONNECTED• Continuing the rollout of SmartBarley across Africa, ensuring that barley farmers

have access to better data and information for their crop production and establishing a competitive local malting barley industry to supply ZBL in Zambia

• Aggregator development programme• Piloting the Agrible crop management tool across barley and maize in South Africa, providing digital

insights that help farmers make daily decisions to improve their crop yields and quality• Expanding the use of SMS and voice message technology to broadcast relevant

crop planning and management information across our smallholder base in Uganda – providing weather alerts, pricing and cashless payments notifications

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OUR 2025 SUSTAINABILITY GOALS

WATER STEWARDSHIP100% of our high risk sites will have improved water security and access in all high risk sites, we will reduce water usage to 2.0 hl/hl (2.8 hl/hl all other sites). We will provide water access to 2.5 million people

SOUTH AFRICA: • Tshwane partnership rehabilitating water infrastructure. SAB partnered with the city of Tshwane to

rehabilitate the natural Groenkloof springs and Kentron borehole to augment the city’s water supply. This has resulted in an additional 12 million litres of water being released into the city’s network per day.

• WWF partnership in George releasing 1bn litres of water into the respective catchment pa. SAB engaged in a project with WWF to clear alien vegetation in the water catchment of the Outeniqua mountains in George, Western Cape. This alien invasive vegetation consumes a significant amount of water and through its removal and replacement with endemic vegetation the programme has been able to release an additional one billion litres in the catchment.

• SAB donating 12mn quart bottles of H20 to CPT. In the event of day zero, SA Breweries and the City of Cape Town have been working on emergency contingency measures to support water provision in the City of Cape Town. Through this initiative SAB’s Newlands Brewery will distribute 12 million bottles of water equating to nine million litres of water. In addition, the brewery has completely detached itself from the municipal supply network, relying solely on natural spring and groundwater in the area.

TANZANIA:• TBL building water pipeline that will supply water to 5000 residents in the Muleba District in 2018. In

support of access to local water and sanitation services, Tanzanian Breweries are working with strategic partners to support the community. The TBL Group has partnered with AMREF Tanzania to build a water pipeline that will supply water to 5000 residents in the Muleba District, Tanzania. This infrastructure will be owned by the district of Muleba and is designed to ensure that there is no revenue leakage.

• Providing sanitation facilities in a school in Tanzania. The Dar es Salaam plant is located in the same district as the Uhuru Changanyikeni School that caters to many children with disabilities. The school has access to water however they do not have a water pump nor adequate toilets for children with disabilities. We have begun the process of building toilets at the school specifically designed for children with disabilities and we will also make provision for a pump to supply water to the facility.

UGANDA• NBL collaborating with local government, Coca-Cola and GIZ to both improve the quality and quantity

of water in the Rwizi river. Sustainable Water Management in the River Rwizi (2013-2016) supports the Rwizi Catchment Management Organisation (CMO) in promoting sustainable water usage and cooperation among water users, authorities and local communities. It works to improve sustainable water resource management, improve community livelihoods and the quantity and quality of water of the River Rwizi as the main source of water for residents and industries of Mbarara, the largest town in western Uganda.

• The highlights of the project are as follows:• Restoration of over 300ha additional degraded wetlands (totalling over 500ha) and the

provision of alternative livelihoods to communities in the River Rwizi catchment area• Active uptake and exchange of the work of the Rwizi Catchment Management Organisation,

which IWaSP helped to establish. Other catchment management organisations undertake regular learning visits and incorporates best practices from the RCMO

• Establishment of a new partnership with Kinyara Sugar Ltd and the MWE to sustainably tackle and mitigate water-related risks for communities and industry on 30,000 ha of sugarcane plantations.

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OUR 2025 SUSTAINABILITY GOALS

CLIMATE ACTION100% purchased electricity from renewable sources.Electrical energy efficiency, 8.2 kWh/hl and Thermal energy efficiency, 71.6 MJ/hl. Achieve 36% carbon reduction.

AFRICA: • RE100 research in Ghana, Tanzania, Zambia, Uganda and Nigeria. AB InBev will be conducting

RE Market Intelligence Country Reviews to understand the energy commodity, electricity and renewable energy market in alignment with the countries’ dynamics and the political and legal environment for Ghana, Zambia, Tanzania, Uganda and Nigeria to assist us with developing country specific RE implementation strategies to meet our RE100 targets by 2025.

SOUTH AFRICA:• CNG truck pilot in Gauteng, Alrode in C18.

AB-In-Bev has a target to reduce carbon emissions by 36% by 2025. In Africa, this challenge is greater due to infrastructure constraints and higher costs of implementing green initiatives. South Africa has the same problems but its problems are magnified due to our country not producing renewable fuel solutions. Currently there is multiple producers of NG (natural gas) in South Africa. NG is a fuel, which is used as a substitute for diesel in many operations, which include vehicles. Most suppliers in South Africa use NG from the Sasol pipeline and there is a limited supply of this NG, it is also less clean than bio-NG which produces zero greenhouse gases. A pilot is to be conducted in Alrode to observe the efficiency of NG in our operations, which would use dual fuel kits, allowing the trucks to use NG and diesel. This will allow us to ascertain whether NG has the energy output to transport our trucks around our network of lanes. The programme includes AB InBev collaborating with Tetra 4, which has its own NG gas fields in the free state. This will have the effect of helping us lower our carbon emissions whilst proving the case for NG in South Africa. It will also have the effect of lowering the cost for fuel in our fleets which makes up approximately 50% of our spend in 3PL (3rd party logistics). This project will increase savings on our fuel spend, lower carbon emissions in our fleet, provide the groundwork to establish a natural gas network in South Africa, creating new jobs as more NG becomes available through our increased demand and creating an increased supply and alternative fuel source in our supply network.

• Combined Heat and Power generation (CHP) Co-generation, or combined heat and power, is the ‘concurrent production of electricity or mechanical power and useful thermal energy (heating or cooling) from a single unified system*. While the conventional method of producing usable heat and power separately has a general combined efficiency of 45%, CHP systems can operate at levels as high as 80%. In South Africa, SAB is using biogas from its anaerobic digester to fuel Alrode Brewery’s USD 1.4-million co-generation plant. The brewery requires just over seven kilowatt hours (kWh) of electricity per hectolitre (hl) of beer produced. This plant generates between one and 1.2 kWh/hl of this demand. This generates a significant saving for the brewery, especially considering that Alrode Brewery produces around 27% of SAB’s 29 million hl of beer annually. In addition to saving on electricity costs, the plant is also helping SAB to reduce its carbon footprint by approximately 8000 tonnes of CO2 per year. Until now, the brewery has used the biogas generated in the effluent plant to solely generate steam through a biogas boiler. The plant also supports the brewery during power failures by carrying the baseload of all essential equipment.

• Solar rollout to 1000 taverns AB InBev has committed a roll out to 1000 taverns as part of the Solar Tavern Project. The pilot programme is currently being initiated in South Africa to test the viability of solar energy to power in-store coolers for our retailers

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OUR 2025 SUSTAINABILITY GOALS

CLIMATE ACTION100% purchased electricity from renewable sources.Electrical energy efficiency, 8.2 kWh/hl and Thermal energy efficiency, 71.6 MJ/hl. Achieve 36% carbon reduction.

at 10 taverns in the Gauteng province. We piloted the concept for both outlets with electricity access and those with no electricity connection at all. As an example, one tavern was transformed from having no electricity, to having enough electricity generated by solar to power three SAB fridges and adequate lighting for the establishment. This not only keeps our beers cold, but also provides a safer and more hospitable environment for consumers. We are using the data from the pilot to test the potential costs savings that can be achieved, Return-On-Investment for the tavern owners, and possible funding models with a view of scaling this program in 2018. The objective of this project is to determine if current available solar technology could be used to effectively power retailer coolers in order to replace grid electrical consumption of the establishments. The project will also determine a cost model for solar application in the retailer environment. Assuming the technology is viable, determining a financing mechanism which would make the technology affordable to retailers given the relatively high upfront capex costs typically associated with solar technology.

• Signed PPA’s to install 5MW of on-site solar capacity across 5 breweries In South Africa we are focussing on on-site solar for our breweries and earlier this year we signed a Power Purchase Agreement (PPA) to install 5MW of solar across five of our breweries, namely Alrode, Chamdor, Ibhayi, Newlands and Rosslyn, accounting for approximately 5% of South Africa’s Renewable Energy requirements.

NIGERIA AND GHANA SOLAR• PPA’s for roof top solar for Sagamu brewery (Nigeria) and Accra brewery (Ghana) now at advanced stage of

planning. In Ghana and Nigeria, we are in the process of negotiating a PPA for on-site solar at our breweries in Accra and Sagamu that should account for 3-5%, per brewery, of our on-site purchased electrical requirements.

UGANDA: • Biogas optimisation program in Mbarara doubled collection efficiency from 4.6 MJ/hl to 9.5 MJ/hl. Increasing plants

RE consumption and reducing AB InBev’s carbon footprint. As a company we are also increasingly looking at the role that renewable thermal energy can play within our energy portfolio. Our initial focus has been on utilising biogas generated in our wastewater treatment facilities within our processes, which typically accounts for about 10% of a brewery’s energy requirements. We are also looking at biomass as an energy source and have begun undertaking feasibility studies in a few of our African countries to determine its suitability and long-term sustainability. The Nile Breweries’ Mbarara plant, in Uganda, has been able to effectively improve the Biogas utilisation for three months in late 2017 to save over USD 13 thousand in heavy furnace oil at the boiler. For the past three years, energy recovered from biogas has never gone beyond 5 Mega-joules per hectolitre (MJ/hl)* but after improvements, the plant operated at an average of 9.46MJ/HL for September, October and November 2017. This was done by optimising the pressure of the biogas supply, biogas control valve optimisation of the operating range from 30% to 90%, and the inspection and cleaning of the condensate traps to ensure that only clean biogas was utilised at the boiler. The results of the implementation of the above were overwhelmingly positive with an increase in the energy recovery from 4.6MJ/hl to 9.46MJ/hl in November 2017.

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OUR 2025 SUSTAINABILITY GOALS

CIRCULAR PACKAGINGProtect or grow baseline returnable packaging share.Increase recycled content of one-way glass bottles to 50%. Implement in-market recycling programmes in all 11 markets (on and/or off-site).

AFRICA: AB InBev will be conducting AB InBev globally has one of the highest proportions of production volumes sold in returnable packaging. In the Africa Zone specifically, just over 80% of our products are sold in packaging that is returned to our facilities to be cleaned and reused again. In some of our markets the average lifespan of a bottle can be as high as 20 trips per bottle before it is recycled and made into a new bottle. Utilising returnable packaging has a number of benefits including: diverting more waste away from landfills, utilising less virgin raw materials, and reducing the amount of energy required to produce packaging and the overall carbon footprint of our products. As part of our 2025 sustainability goals, we have made a commitment that by 2025, all of our products will be in packaging that is returnable or made from average >50% recycles content for one-way glass (OWG) or polyethylene terephthalate (PET), or average >70% recycled content for aluminium cans. In order to increase the recycled content of our packaging substrates we require vibrant recycling markets that allow for post-consumer packaging waste to be recovered, sorted and cleaned for re-use by our suppliers. To this extent, AB InBev Africa is supporting industry and launching its own in-market initiatives. Industry associations, such as the Glass Recycling Company in South Africa (www.theglassrecyclingcompany.co.za), play a crucial role in bringing different role players within the packaging industry together to collaborate and support the implementation of packaging waste management programs. Through collective efforts our reach is far greater, and we are able to pool resources together in order to get programs to a scale that results in material impact on the ground. These associations also play an important advocacy and educational role in supporting recycling and reuse within their target communities. In some instances, we also initiate our own programs in locations where we believe we can kickstart local initiatives more effectively. We will pilot initiatives in South Africa and Mozambique to better understand how we can develop effective programs working in collaboration with our partners.

SOUTH AFRICA AND TANZANIA: • Bottle light weighting initiative for South Africa’s CMS and Castle 340ml non-returnable bottles and Tanzania’s

Konyagi bottle light weighting in TZ for 250 & 500ml bottles. The practice of ‘light-weighting’ or reducing the packaging weight for the benefit of promoting environmental sustainability and reducing costs throughout the supply chain has been gaining momentum among food and beverage manufactures in recent years. AB InBev have made significant gains in reducing the weight of our packaging, with many of our units at world class standards. Despite this, we continually look for new opportunities and are also in the process of light weighting our packaging by a further 5%, which in turn, will remove 350 thousand tonnes from production. In 2018, we will be targeting specific one-way glass bottles in both South Africa and Tanzania for further light weighting opportunities as we continue our drive for best in class performance.

• Bottle light weighting initiative in the Southern Africa Market 340ML CASTLE LAGER - Saving per bottle equates to 15g (saving of 8% on weight) 340ML CASTLE MILK STOUT - Saving per bottle equates to 15g (saving of 8% on weight) 340ML CASTLE MILK STOUT (Green Export Bottle) - Saving in bottle equates to 15g (saving of 8% on weight)

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OUR 2025 SUSTAINABILITY GOALS

• Bottle light weighting initiative in the East Africa Market Konyagi 200ml Lightweight - Saving per bottle equates to 10g (saving of 5% on weight) Konyagi 250ml Lightweight - Saving per bottle equates to 25g (saving of 10% on weight) Konyagi 500ml Non Refill Lightweight - Saving per bottle equates to 60g (saving of 14% on weight)

• Packaging waste recycling program in Tembisa AB InBev has a challenge of accounting for packaging waste distributed to its customers. This waste does not always return back to the package-making value chain and therefore ends up being unaccounted for. A pilot is to be conducted in Tembisa to determine what happens to the packaging waste after distribution and to run a recycling programme that will also enable waste PIC mandates to be achieved whilst promoting job creation and creating positive social impact within the Tembisa area. The programme includes AB InBev partnering with some of the local taverns and existing recycling cooperatives in the area in order to drive an effective recycling programme in Tembisa and consequently propelling meaningful positive impact to all relevant stakeholders. The project will include formalising local bottle and waste collectors in Tembisa into registered cooperatives and providing training to waste collectors on health & safety, business and financial literacy, up-cycling and repurposing of waste. The recyclable waste collected will be sorted and sold and the Abomakgereza App will be used to track the quantities of packaging waste, the location of the waste trolleys and the progress of the project. AB InBev will further Invest in infrastructure that will bring efficiencies in the recovery process and create awareness and branding through the proposed marketing plan.

MOZAMBIQUE: • Launching in-market glass recycling initiative with GIZ.

As part of our 2025 sustainability goals, we have made a commitment that by 2025, all of our products will be in packaging that is returnable or made from average >50% recycled content for one-way glass (OWG) or polyethylene terephthalate (PET), or average >70% recycled content for aluminium cans. In order to increase the recycled content of our packaging substrates we require vibrant recycling markets that allow for post-consumer packaging waste to be recovered, sorted and cleaned for re-use by our suppliers. To this extent, AB InBev Africa is supporting industry and launching its own in-market initiatives. Industry associations, such as the Glass Recycling Company in South Africa (www.theglassrecyclingcompany.co.za), play a crucial role in bringing different role players within the packaging industry together to collaborate and support the implementation of packaging waste management programs. Through collective efforts our reach is far greater, and we are able to pool resources together in order to get programs to a scale that results in material impact on the ground. These associations also play an important advocacy and educational role in supporting recycling and reuse within their target communities.

ZAMBIA: • Many hands make light work - Zambian Breweries.

In Lusaka (Zambia) for example, waste infrastructure has struggled to keep pace with a growing population. This means post-consumer packaging waste remains largely uncollected or in drains, which when blocked, becomes a source of cholera and typhoid during the rainy season. Around 200,000 tons of product packaging contributes to the problem each year. While our local subsidiary, Zambian Breweries, does produce around 40% of its products in returnable packaging, the remaining amount is in one-way packaging such as disposable cartons or plastic bottles, which are often difficult to collect and recycle. Recognising we had a role to play in developing an effective solution, Zambian Breweries, consulting with experts in the field, launched Manja Pamodzi – Hands Together – with the Lusaka City Council to improve sanitation and hygiene through the process of cleaning up waste. Since its inception, this social entrepreneurship programme pilot has become part of a growing effort to clean up waste in eight districts, supporting small-scale waste collectors. Today, 449 collectors – of which 338 are women - and five aggregators have registered, collecting a total 251 tons of cartons, cardboard and plastic bottles. Closely tied with the initiative is a strong education element, not only on the environmental and health impacts that littering has on the local community but also on the financial value that can be gained through recycling waste packaging materials.

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OUR 2025 SUSTAINABILITY GOALS

ENTREPRENEURSHIPCreate 10,000 jobs in South Africa by 2022. Scale SA framework into the Zone and reach thousands of entrepreneurs. Scale retailer development into the Zone and reach thousands of retailers.

The South African Breweries (SAB) as a part of the AB InBev family will help to create jobs in South Africa and increase opportunities for entrepreneurs to become part of its supply chain through its key entrepreneurship programmes. From rural entrepreneurs to big business, SAB has laid the foundation to support entrepreneurs and create a total of 10 000 jobs in South Africa by 2022 using its entrepreneurship programmes – SAB KickStart, SAB Foundation, SAB Thrive and SAB Accelerator, as well as its agriculture programmes to grow emerging farmers.

SAB KICKSTART The programme has been running since 1995 and focuses on youth owned businesses. It is focused on investing in youth entrepreneurs between the ages of 18 and 35. The programme backs black entrepreneurs with existing, emerging businesses in key industries that are aligned to supply chains. There are two programmes within the SAB KickStart offering – SAB KickStart Boost and SAB KickStart Ignite. • SAB KickStart Boost is a supply chain readiness programme that’s built around a key objective: Enabling high

potential youth owned business to become suppliers of various organisations in the private and public sector, thereby fast-tracking the transformation of the economy. We back entrepreneurs with existing, emerging businesses in key industries to be ready for and to access supply chains, and as a result grow into sustainable businesses that create jobs.

• SAB KickStart Ignite supports disruptive innovators that have innovative businesses and products that have high potential to grow into viable businesses that can solve our business challenges and can grow to be future creators of employment. Eligible entrepreneurs receive technical product and business development support which includes one on one mentoring, prototyping, commercialisation, and financial support where required. SAB KickStart Ignite acts as a pipeline of entrepreneurs for more advanced programmes such as SAB KickStart Boost.

• Crowdsource solutions for World of Beer turnaround from youth innovators. In 2018 Kickstart shifted gears moving from social innovation to an open innovation platform in order to commercialize innovations as well as to solve business related challenges. The challenge for this year is to turn around the SAB World of Beer, to make it one of the country’s top tourist destinations. We have selected 25 youth innovations from around the country and we will be developing them into reality in the remainder of the year.

SAB FOUNDATION The SAB Foundation is an independent trust founded to benefit historically disadvantaged individuals and communities, primarily but not exclusively, through entrepreneurial development in South Africa. It is one of three beneficiaries of SAB’s BBBEE transaction, SAB Zenzele, established in 2010. Key beneficiary groups include women, youth, people in rural areas and people with disabilities. The long term vision underpinning the SAB Foundation is to ignite a culture of entrepreneurship and social innovation in South Africa as a source of economic growth and a primary source of innovation and job creation. The focus is on investing in entrepreneurs outside of the value chain and across the country with a particular emphasis on businesses outside major metropolitan areas.

The Social Innovation Awards invest in innovative business ideas that can solve social problems. This includes, but is not limited to energy, water, health, education, housing and food security. The Disability Empowerment Awards is a special category for innovation that benefits people with disabilities. The Tholoana Programme is a two-year business support and capital grant programme to assist micro and small enterprises to grow and create jobs.

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OUR 2025 SUSTAINABILITY GOALS

SAB THRIVE The SAB Thrive Fund is an Enterprise & Supplier Development (E&SD) Fund set up and funded by SAB to transform the company’s supplier base. The Fund has been established in partnership with the Awethu Project, a Black Private Equity Fund Manager and SMME investment company. The SAB Thrive Fund’s mandate is to invest in and transform SAB suppliers such that they become more representative of our country’s demographics. SAB Thrive Fund Investees benefit from 100% Black equity capital and business support. SAB ACCELERATOR The key objective of SAB Accelerator is to grow SAB’s supply chain to be inclusive of black-owned, especially black women-owned businesses. To achieve this an incubator consisting of 10 business coaches and 10 engineers, who are dedicated to growing these suppliers, has been created. SAB Accelerator will partner with the company’s suppliers and provide coaching and technical expertise, which in turn will help them understand the SAB landscape, its value chain and integrate them into our business. Simply put, SAB Accelerator is a team of people who are dedicated to help black-owned suppliers improve and grow their businesses and in doing so, create much needed jobs.

SAB’S AGRICULTURE INITIATIVES SAB and AB InBev Africa have committed to establishing thriving barley, hops, maize and malt industries in South Africa that strengthen rural employment and job creation, accelerate the development of emerging farmers and enable SA to become a net exporter of hops and malt by 2021. In addition, SA’s technological and innovation base will be strengthened to improve the productivity of emerging and commercial farmers and create new business opportunities. The company will invest R610-million during this period in developing the capacity of new emerging and commercial farmers and increase the amount of local barley that is malted. The strategic intent is to create at least 2 600 new farming jobs in SA.

SAB LERUMO - WOMEN SUPPLIER DEVELOPMENT, GROWING WOMEN OWNED SPEND BASE SAB Lerumo aims to empower Black Women owned businesses especially those who are struggling to break through the barriers, improving their market access capabilities with Supply Chain and Procurement. The programme is a 5-month masterclass programme that links thought leaders with participants, enables experiential learning, mentoring and coaching, and delivers market-linkage strategies.SAB Lerumo aims to impart skills and knowledge on ABI best practice to small businesses, involve businesses in the development of small suppliers, to create the accountability at all levels and to ultimately increase spend with these businesses. SAB Lerumo imparts core skills to the women entrepreneurs to enable them to improve their market access opportunities and involves our business partners in the masterclasses to advice participants directly. Our hands-on approach enables us to ensure that the SAB Lerumo programme meets our high quality standards and this year the Lerumo programme is targeting Women in Manufacturing with an objective of improving BWO percentages for the 90 SMME’s participants in the programme.

RETAILER DEVELOPMENT PROGRAMME (RDP) The Retailer Development Programme’s (RDP) primary objective is to test the commercial and social impact of a triple-tiered intervention, which includes the provision for business skills, financial inclusion and infrastructure upgrades among 600 retailers across South Africa, Ghana and Tanzania. The pilot data will be used to evaluate the potential for scale of the RDP. The programme aims to increase our retailers’ sales and business revenues, including sales of AB InBev products to deliver positive ROI and improved incomes. Through the Programme the importance of responsible trading will be reinforced and we aim to support retailers to implement responsible practices. The Programme will deepen our relationship with our small retailer customers and demonstrate our commitment to growing together as well as enhance our license to operate by demonstrating our commitment to supporting small businesses in our value chain to thrive.