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Brewery Excellence Program

Handbook
2017
Dear Supply Team,

As employees of a truly global company, our travels take us to all parts of the world. While
it is common to see each country or region display unique cultural differences, we always
find a common bond among us - VPO.

At AB-InBev we have a unique advantage in our breweries and vertical operations. Our
facilities are much more alike than different. We are all utilizing similar facilities and
equipment, producing similar products, and solving similar problems! These similarities
make a core management system all the more powerful because we have peers doing the
same things, all over the world, 24 hours per day. We can learn from each other.

VPO has evolved after years of continuous improvement and the program materials have
been updated accordingly. We are using technology to add power and ease-of-use to our
VPO tools. We have many operations that skillfully utilize all that VPO has to offer, and as a
result, achieve very high levels of performance. The correlation is clear - superior VPO
execution leads to superior results.

VPO begins with you and the Pillar handbooks. All AB-InBev employees should read and
understand the contents. However, VPO really lives on the plant floor, where we make our
products. There is no substitute for seeing VPO in action in our best operations to really
grasp and understand how all the pieces from all the pillars fit together to drive world-class
performance.

Our Brewery Excellence Program (BEP) has evolved as well, to recognize the correlation
between means and results and to recognize and reward high levels of performance.

The time to drive VPO and new levels of performance is now! The person to make it happen
is you!

Good luck and best regards,

Pete Kraemer
Chief Supply Officer

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1. Introduction and Objectives

1.1 Introduction

ABI’s Excellence Programs (EPs) are one of our competitive advantages. They provide the
necessary tools, processes and capabilities to support our people in their quest towards
excellence. They are a series of guides towards the attainment of excellence, leading the
way to create the very Best Beer Company Bringing People Together for a Better World. EPs
also offer an objective way of checking compliance to the entire ABI Management System.

AB InBev has chosen “the House concept” to structure the management of the company.

Each function in the company has defined its own house. All of them are built using the
single standard: the roof of the house represents the results, and the vertical pillars reflect
the means by which the results are reached. Vertical pillars are also described as the
technical knowledge of each function/area.

In every house there are 2 horizontal pillars: Management and People. The Management
Pillar crosses all knowledge pillars and ties them in with results. The People pillar is the
foundation and describes the way of managing, leading and engaging our people.

Excellence Programs are also built based on each function house: Means categories (vertical
pillars and horizontal pillars) and the Results category (roof).

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The Excellence Programs are organized as bellow:

Produce beer, Brewery EP (BEP): for Breweries, Soft Drinks and Verticalized plants.

Sell and Market beer, Commercial Excellence: with Sales (SEP) and Marketing (MEP) areas.

Helps produce, sell and market beer, Support Excellence: with Information & Business

Services (IBSEP), Finance (FEP), Corporate Affairs (CAEP), People (PEP), and Supply (SuEP)

areas.

The Brewery Excellence Program measures the efficiency of the VPO house, and recognizes
those best performing plants within their Zones and overall.

Results:
Performance, Financial, Quality,
Safety, Environment, Logistics
and People

Means:
Method – Management pillar

Leadership – People pillar

Knowledge – Safety
Quality
Environment
Maintenance
Logistics

Since people are the foundation of everything we do, the VPO People Pillar defines all
policies, procedures and processes to manage and develop our teams and leadership. The
method to sustain and improve results is encompassed in the VPO Management Pillar. It
optimizes and standardizes supply operations across AB-InBev on its journey towards the
Dream to “Bring People Together for a Better World”. By successfully implementing the
method supported by the Process Knowledge Pillars (Maintenance, Quality, Logistics,
Environment, Safety), the necessary behavior will be established to continuously drive and
sustain performance improvement and share best-practices.

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1.2 Objectives of the program

The Brewery Excellence Program Objectives are:


1. Improve results by providing the best practices known for each business
2. Encourage the business to strive to be the best
3. Promote the sharing, replication and sustainability of best practices on a global basis
4. Stimulate constant improvement through excellence in routine execution
5. Create a healthy competitive mindset that inspires people to be the best in their area
6. Recognize sustainable excellence in means and results
7. Evaluate and recognize the best performance across the zones (breweries, plants, BUs
and functions)

2. General Principle

Through VPO, we measure each Plant to determine that the results have been achieved
through the correct application of the means.
The Means are divided into 7 Pillars (Section 1.1 Introduction).
All of the Pillar questions are structured into blocks of questions covering Fundamentals,
Managing to Sustain and Managing to Improve layers, as visualized in the example below.
These VPO questionnaires, which can be found in the VPO Means Scoring system, are
applicable for all brewing and verticalized facilities and cannot be modified.
Pillar, Block and Department hurdles/thresholds are achieved when means are greater than
or equal to the hurdle, and not through rounding (e.g. 69.94% is not achieving a hurdle of
70%).

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2.1 VPO Maturity Levels

We have 5 VPO Maturity Levels to drive evolution and high performance in our Facilities:

• Basic Level: is the first Level achieved when a Facility has the minimum VPO
implementation – the facility is then considered Qualified in VPO, which is the first
step towards Sustainability.
• Intermediate Level: is the second step in VPO implementation. Higher Means
thresholds need to be achieved – when a Facility achieves this level, it has reached
the second step towards Sustainability.
• Sustainability Level: a Facility in this level is able to show sustainability in its Means
(VPO) to improve its Results (KPIs) year over year.
• Excellence Level: Facilities with excellent performance, not only versus their targets
but also compared to most of their peers. Excellence Program Contenders will come
from this cluster or higher.
• World Class: Facilities with the best performance compared to their peers will be in
this cluster.

In order to move from one Level to the other, a facility must achieve the criteria in the
previous Level first.

Each Level’s requirements will be described in the following pages.

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2.1.1 Basic Level

Criteria: to achieve a Means hurdle by Pillar (based on the Plant Average), and to have No
Red Blocks in any of the Pillars (based on the Plant Average).

Thresholds: hurdles per Pillar shown below. A block is considered Red when <30%.
Environmen
Management People Safety Quality Logistics Maintenance
t
Basic
hurdles
50% 50% 50% 55% 50% 50% 50%

2.1.2 Intermediate Level

Prerequisite: achievement of Basic Level.

Criteria: to achieve a higher Means hurdle by Pillar (based on the Plant Average).

Thresholds:

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Environmen
Management People Safety Quality Logistics Maintenance
t
Intermediate
hurdles
60% 60% 60% 65% 60% 60% 60%

2.1.3 Sustainability Level

Prerequisite: achievement of Intermediate Level.

Criteria: to achieve the threshold in the Sustainability Index (Means + Results), showing
Results are sustained or improved year over year.

Thresholds: ≥80% in the Sustainability Index.

Sustainability Index

The Sustainability Index is the way that we measure Sustainability at an operation. It


measures each facility to determine that the results have been achieved through the correct
application of the means. It is calculated by scoring two separate categories: Means and
Results. The following section describes each category, the hurdle criteria, and the
sustainability score calculation method.

Means
Means points for Sustainability will be allocated on a Pass/Fail basis. All means points will
be earned if the facility achieves the Sustainability hurdle % for all 7 VPO Pillars (Safety,
People, Management, Quality, Maintenance, Logistics and Environment, including
Management and Maintenance Pillars at the department level). No points will be earned if
any pillar fails to achieve its hurdle.

Environmen
Management People Safety Quality Logistics Maintenance
t
Sustainability
hurdles
70% 70% 70% 75% 70% 70% 70%

Results
The Results are split into different KPI baskets, covering People, Safety, Quality,
Performance, Logistics and Cost. A total of 11 KPIs will be used to measure results
performance and each KPI will have a weight assigned in the Sustainability score.

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The Sustainability KPIs are shown below:

KPIs for Sustainability – Breweries:

In order to achieve Sustainability points for a KPI, the end of year KPI performance level
must be the same or better than the previous year, OR be in the Global top quartile for that
KPI.
For People Turnover, in order to achieve Sustainability points for this KPI, the end of year
results must be better than the hurdle (≤5%).

# KPI Code KPI Weight Criteria


1 PG-K1091 People Turnover 6% ≤5%
2 PG-K1115 TRIFR 6%
3 PG-K1280 Consumer complaints bottles and cans 6%
4 PG-K0510 Water usage Ratio – Brewery 6% Equal or
5 PG-K0650 Brewery Total Extract Losses 6% Better than
6 PG-K0410 TTP 6% previous year
7 PG-K0541 Total Purchased Energy per hLN 6% or in the
8 SL-K6500 Service Level Brewery VPO Performance* 6% Global Top
9 PGK-1113 Brewery Lost Time Injuries (LTI) 6% Quartile
10 PG-K0861 GLY 8%
11 PG-K1260 Sensory 8%
PG-K1261 Sensory (Soft drinks and mixed facilities)*

*Service Level: In order to achieve Sustainability points for the Service Level KPI in 2017, the end of year results
must be better than the target or in the Zone Top Quartile.

*Sensory: The Sensory top quartile for the Soft Drink facilities will be calculated from all of the Soft Drinks Sensory
results, including the Soft Drinks results from Mixed facilities.

KPIs for Sustainability – Verticalized Operations*:

In order to achieve Sustainability points for a KPI, the end of year KPI performance level
must be the same or better than the previous year, OR be in the Global top quartile for that
KPI, when compared within their Verticalized Category groups: 1- Lids & Crowns, 2-
Aluminum Cans & Bottles, 3- Glass, 4- Malt. For all other Verticalized Operations, only the
first rule will apply (performance level same or better than the previous year).
For People Turnover, in order to achieve Sustainability points for this KPI, the end of year
results must be better than the hurdle (≤5%).

*Hop, Hop Pellet, Liner, Sand and Glass Lab Ops are out of Global scope for the Sustainability Index.

*KPI Codes are listed in the Appendix – Verticalized Results Basket

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Verticalized PACKAGING Operations

# KPI Weight Criteria


1 People Turnover 6% <=5%
2 TRIFR 6%
3 Customer complaints 6%
4 Legal Env Noncompliances 6%
5 Volume Plan Attainment 6% Equal or Better
than previous
6 TTP 6%
year or in the
7 Total Purchased Energy per Unit 6%
Global Top
8 Spoilage / Process Losses 6% Quartile
9 Lost Time Injuries (LTI) 6%
10 GLY equivalent 8%
11 Global Food Safety Index (GFSI) Readiness* 8%
*Pre-requisite Program (PRP) for Label facilities only

Verticalized AGRICULTURAL Operations

# KPI Weight Criteria


1 People Turnover 6% <=5%
2 TRIFR 6%
3 Customer complaints 6%
4 Water usage Ratio 6%
5 Malting PhysChem Index (off-kiln) 6% Equal or Better
than previous
6 TTP 6%
year or in the
7 Total Purchased Energy per Unit 6%
Global Top
8 Clean Barley to Malt Yield 6% Quartile
9 Lost Time Injuries (LTI) 6%
10 GLY equivalent 8%
11 Global Food Safety Index (GFSI) Readiness 8%

Sustainability Score Calculation Method


In order to be considered Sustainable, a Facility must achieve, by the end of the year, a
Sustainability score of 80% or greater from the sum of the 2 categories (Means and
Results), according to the criteria below:
 Means - Sustainability hurdle % for all 7 pillars must be achieved
 Results - Must achieve at least 50% out of a possible 70% score in the KPIs category
Therefore, the sum of the scores for the 2 categories must be > 80%:
Category Calculation Method Weight Rule
Quality Pillar ≥ 75% and Others Pillars ≥ 70%
Means: 30% Yes/No
Management and Maintenance Pillars at department level
+
KPI Basket of KPIs equal or better than previous year 70% Yes/No 80%
Results: OR (6% or 8% for each KPI

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Facility is in the Global top Quartile for a KPI
weight per KPI)
People Turnover ≤ 5%

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2.1.4 Excellence Level

Prerequisite: achievement of Sustainability Level.

Criteria: to achieve the threshold in the Excellence Index (Means + Results). Facilities will
be classified in 2 groups: Group 1 = Facilities ≥ 3 MM HL; Group 2 = Facilities < 3 MM HL.

Thresholds: ≥80% in the Excellence Index, which includes achieving the threshold in the 4
mandatory KPIs in the basket.

Excellence Index

The Excellence Index is the way that we measure high performance at an operation. It
measures each facility to determine that high performance Results have been achieved
through the correct application of the Means. It is calculated by scoring two separate
categories: Means and Results. The following section describes each category, the hurdle
criteria, and the Excellence score calculation method.

Means
Means points for Excellence will be allocated on a Pass/Fail basis. All Means points will be
earned if a facility achieves the Sustainability hurdle % for all 7 VPO Pillars (Safety, People,
Management, Quality, Maintenance, Logistics and Environment, including Management and
Maintenance Pillars at the department level). No points will be earned if any pillar fails to
achieve its hurdle.

Environmen
Management People Safety Quality Logistics Maintenance
t
Sustainability
hurdles
70% 70% 70% 75% 70% 70% 70%

Results
The Results are split into different KPI baskets, covering People, Safety, Quality,
Performance, Logistics and Cost. A total of 11 KPIs will be used to measure Results
performance, and each KPI will have a weight assigned in the Excellence score.

The Excellence KPIs are shown below:

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KPIs for Excellence – Breweries:

In order to achieve Excellence points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 2 groups:

- Group 1 = Facilities ≥ 3 MM HL;


- Group 2 = Facilities < 3 MM HL.
In addition, achieving the thresholds in the Service Level, LTI, GLY and Sensory KPIs is
mandatory for the Excellence Index achievement.

Threshold
# KPI Code KPI Weight Group 1 Group 2
1 PG-K1091 People Turnover 6% 5% 5%
2 PG-K1115 TRIFR 6% 2.30  0.00 
3 PG-K1280 Consumer complaints bottles and cans 6%  425.00 350.00 
4 PG-K0510 Water usage Ratio – Brewery 6%  3.00 2.90 
PG-K0650 Brewery Total Extract Losses 6% 5.15  5.15 
5
PG-K0690 Soft Drink Total Extract Losses 6% 0.80 0.80
6 PG-K0410 TTP 6% 5.00  4.15 
7 PG-K0541 Total Purchased Energy per hLN 6%  101.50 101.50 
8 SL-K6500 Service Level Brewery VPO Performance* 6% 2%  2%
9 PGK-1113 Brewery Lost Time Injuries (LTI) 6% 0 0
10 PG-K0861 GLY 8% 63% 65%
PG-K1260 Sensory 7.30 7.30
11 8%
PG-K1261 Sensory (Soft drink facilities) 8.10 8.10

  Mandatory achievement

* For countries working in a push system (eg: US) the Service Level KPI hurdles for Excellence will be
country specific and aligned between GHQ and Zone.

KPIs for Excellence – Verticalized Operations*:

In order to achieve Excellence points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 4 groups:

1) Lids & Crowns


2) Aluminum Cans & Bottles
3) Glass
4) Malting

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In addition, achieving the thresholds in the Spoilage (for Packaging Operations), Malting
PhysChem Index (for Agricultural Operations), LTI, GLY and Customer Complaints KPIs is
mandatory for the Excellence Index achievement.

* Hop, Hop Pellet, Liner, Sand and Glass Lab Ops are out of Global scope for the Excellence Index.

*KPI Codes are listed in the Appendix – Verticalized Results Basket

Verticalized PACKAGING Operations

Threshold
Alu Cans
Lids &
# KPI Weight & Glass
Crowns
Bottles
1 People Turnover 6% 5% 5% 5%
2 TRIFR 6% 0.00 0.00 0.00
3 Global Food Safety Index (GFSI) Readiness* 6% 92.00 92.00 92.00
4 Legal Env Noncompliances 6% 0.00 0.00 0.00
5 Volume Plan Attainment 6% 98.40 98.40 98.40
6 TTP 6% 8.90 36.00 0.18
7 Total Purchased Energy per Unit 6% 125,950 5,180 7,400
8 Spoilage 6% 2.90 2.50 11.90
9 Lost Time Injuries (LTI) 6% 0.00 0.00 0.00
10 GLY equivalent 8% 85.00 88.00 88.30
11 Customer complaints 8% 10.00 4.10 11.50
* Pre-requisite Program (PRP) for Label facilities
  Mandatory achievement

Verticalized AGRICULTURAL Operations


Threshold

# KPI Weight Malt

1 People Turnover 6% <=5%


2 TRIFR 6% 0.00
3 Global Food Safety Index (GFSI) Readiness 6% 92.00
4 Water usage Ratio 6% 4.35
5 Clean Barley to Malt Yield 6% 1.16
6 TTP 6% 1.25
7 Total Purchased Energy per Unit 6% 3,025
8 Malting PhysChem Index (off kiln) 6% 93.95
9 Lost Time Injuries (LTI) 6% 0.00
10 GLY equivalent 8% 88.00
11 Customer complaints 8% 0.00

  Mandatory achievement

Excellence Score Calculation Method

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In order to be considered Excellent, a Facility must achieve, by the end of the year, an
Excellence score of 80% or greater from the sum of the 2 categories (Means and Results),
according to the criteria below:
 Means - Sustainability hurdle % for all 7 pillars must be achieved
 Results - Must achieve at least 50% out of a possible 70% score in the KPIs
category, including the 4 mandatory KPIs in the basket.
Therefore, the sum of the scores for the 2 categories must be > 80%:

Category Calculation Method Weight Rule


Quality Pillar ≥ 75% and Others Pillars ≥ 70%
Means: 30% Yes/No
Management and Maintenance Pillars at department level
+ 80%
70%
KPI Basket of KPIs achieving the excellence threshold for each Yes/No
(6% or 8%
Results: KPI (including the 4 mandatory KPIs in the basket) for each KPI
weight per KPI)

2.1.5 World Class

Prerequisite: achievement of Sustainability Level.

Criteria: to achieve the threshold in the World Class Index. Facilities will be classified in 2
groups: Group 1 = Facilities ≥ 3 MM HL; Group 2 = Facilities < 3 MM HL.

Thresholds: ≥80% in the World Class Index + achievement of the threshold of 4 mandatory
KPIs.

World Class Index

The World Class Index is the way that we measure top performance at our operations. It
measures each facility to determine that top performance results have been achieved
through the correct application of the Means. It is calculated by scoring two separate
categories: Means and Results. The following section describes each category, the hurdle
criteria, and the World Class score calculation method.

Means
Means points for World Class will be allocated on a Pass/Fail basis. All Means points will be
earned if a facility achieves the sustainability hurdle % for all 7 VPO Pillars (Safety, People,
Management, Quality, Maintenance, Logistics and Environment, including Management and
Maintenance Pillars at the department level). No points will be earned if any pillar fails to

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achieve its hurdle.

Environmen
Management People Safety Quality Logistics Maintenance
t
Sustainability
hurdles
70% 70% 70% 75% 70% 70% 70%

Results
The Results are split into different KPI baskets, covering People, Safety, Quality,
Performance, Logistics and Cost. A total of 11 KPIs will be used to measure Results
performance and each KPI will have a weight assigned in the World Class score.

The World Class KPIs are shown below:

KPIs for World Class – Breweries:

In order to achieve World Class points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 2 groups:

- Group 1 = Facilities ≥ 3 MM HL;


- Group 2 = Facilities < 3 MM HL.
In addition, achieving the thresholds in the Service Level, LTI, GLY and Sensory KPIs is
mandatory for the World Class Index achievement.

Threshold

# KPI Code KPI Weight Group 1 Group 2

1 PG-K1091 People Turnover 6% 5% 5%


2 PG-K1115 TRIFR 6% 2.00  0.00 
3 PG-K1280 Consumer complaints bottles and cans 6% 350.00   220.00
4 PG-K0510 Water usage Ratio – Brewery 6% 3.00  2.90 
PG-K0650 Brewery Total Extract Losses 6% 5.00  5.00 
5
PG-K0690 Soft Drinks Total Extract Losses 6% 0.40 0.40
6 PG-K0410 TTP 6% 6.10  4.50 
7 PG-K0541 Total Purchased Energy per hLN 6% 97.50  97.50 
8 SL-K6500 Service Level Brewery VPO Performance* 6%  1% 1%
9 PGK-1113 Brewery Lost Time Injuries (LTI) 6% 0 0
10 PG-K0861 GLY 8% 70% 73%
PG-K1260 Sensory 7.50 7.50
11 8%
PG-K1261 Sensory (Soft drink facilities) 8.45 8.45

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  Mandatory achievement

* For countries working in a push system (eg: US) the Service Level KPI hurdles for World Class will be
country specific and aligned between GHQ and Zone.

KPIs for World Class – Verticalized Operations*:

In order to achieve World Class points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 4 groups:

5) Lids & Crowns


6) Aluminum Cans & Bottles
7) Glass
8) Malting
In addition, achieving the thresholds in the Spoilage (for Packaging Operations), Malting
PhysChem Index (for Agricultural Operations), LTI, GLY and Customer Complaints KPIs is
mandatory for the World Class Index achievement.

* Hop, Hop Pellet, Liner, Sand and Glass Lab Ops are out of Global scope for the World Class Index.

*KPI Codes are listed in the Appendix – Verticalized Results Basket

Verticalized PACKAGING Operations


Threshold
Alu Cans Lids &
# KPI Weight Glass
& Bottles Crowns
1 People Turnover 6% <=5% <=5% <=5%
2 TRIFR 6% 0.00 0.00 0.00
3 Global Food Safety Index (GFSI) Readiness* 6% 95.00 95.00 95.00
4 Legal Env Noncompliances 6% 0.00 0.00 0.00
5 Volume Plan Attainment 6% 98.90 98.90 98.90
6 TTP 6% 9.20 37.65 0.22
7 Total Purchased Energy per Unit 6% 121,785 3950.00 6,830
8 Spoilage 6% 1.50 1.25 4.00
9 Lost Time Injuries (LTI) 6% 0.00 0.00 0.00
10 GLY equivalent 8% 91.00 93.00 93.00
11 Customer complaints 8% 5.00 3.00 7.00
* Pre-requisite Program (PRP) for Label facilities
  Mandatory achievement

Verticalized AGRICULTURAL Operations


Threshold

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# KPI Weight Malt

1 People Turnover 6% <=5%


2 TRIFR 6% 0.00
3 Global Food Safety Index (GFSI) Readiness 6% 95.00
4 Water usage Ratio 6% 4.00
5 Clean Barley to Malt Yield 6% 1.15
6 TTP 6% 1.40
7 Total Purchased Energy per Unit 6% 3,000
8 Malting PhysChem Index (off kiln) 6% 95.40
9 Lost Time Injuries (LTI) 6% 0.00
10 GLY equivalent 8% 95.80
11 Customer complaints 8% 0.00

  Mandatory achievement

World Class Score Calculation Method


In order to be considered World Class, a Facility must achieve, by the end of the year, a
score of 80% or greater from the sum of the 2 categories (Means and Results), according to
the criteria below:
 Means - Sustainability hurdle % for all 7 pillars must be achieved
 Results - Must achieve at least 50% out of a possible 70% score in the KPIs
category, including the 4 mandatory KPIs in the basket.
Therefore, the sum of the scores for the 2 categories must be > 80%:

Category Calculation Method Weight Rule


Quality Pillar ≥ 75% and Others Pillars ≥ 70%
Means: 30% Yes/No
Management and Maintenance Pillars at department level
+ 80%
70%
KPI Basket of KPIs achieving the World Class threshold for each Yes/No
(6% or 8%
Results: KPI (including the 4 mandatory KPIs in the basket) for each KPI
weight per KPI)

3. Brewery Excellence Program Rules and Regulations

The Brewery Excellence Program is divided into 2 categories: Means and Results.
• The Means are divided into the 7 VPO pillars, with a total amount of points allocated
to each Pillar.
• The Results are split into different VPO KPI baskets, covering KPI Performance,
Financials, Safety, Environment, Quality, Logistics and People.

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The points allocated for the Means and the Results categories have the same weight (50%
of the points allocated for Means and 50% for Results), as they are both equally important.
The maximum points that can be achieved in the Brewery Excellence program is:
Means category: 500 points
Results category: 500 points

Means Category

Each VPO Pillar questionnaire has points allocated as shown below.


 Management 80 points
 People 70 points
 Safety 70 points
 Quality 70 points
 Environment 70 points
 Maintenance 70 points
 Logistics 70 points
Total 500 points

Results Category

Points for the BEP Results will be allocated to:

Beverage Verticalized
Operations Operations*
- Performance 125 points 155 points
- Financials 55 points 40 points
- Quality 125 points 80 points
- Safety 60 points 70 points
- Better World 60 points 70 points
- Logistics 55 points 55 points
- People 20 points 30 points
Total 500 points 500 points

*The points’ distribution for Verticalized Operations changes depending on the VOP Category a facility
resides in (details on the Appendix).

The BEP will use data collected directly from the Global KPI Reporting Tool and Means
Scoring Tool. Facilities will have time to review scores and conduct a review for accuracy,

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but must follow existing company time guidelines and procedures to correct data or revise
budget targets in the system, as only data in the system will be counted.

Disqualification Criteria

During the BEP, a facility can be disqualified for any of the following reasons, which must be
communicated to Global Supply via the routine MCRS between the Zone and Global
functions.

General Disqualification Criteria

 A facility has a red block (plant average score, not individual department score)
within any pillar from the Zone validated self-assessment 4 (December)
 Failure to achieve the Sustainability Index
 Failure to achieve the Excellence Index
 Failure to have LTIs equal to or below 1 for facilities with ≥ 501 employees and zero
LTIs for facilities with ≤ 500 employees
 Occurrence of a fatal occupational accident. Scope: Own employees (including
temporary workers, seasonal workers, student workers etc) and Contractors (service
providers and projects). Commuting fatal accidents are not in scope.
 Failure in reporting a LTI, MDI, MTI or severe incident
 Occurrence of a severe environmental release or spill
 A significant safety or environmental incident which generates negative media
exposure
 If there is dispersion ≥10% of a facility’s Pillar score between the Zone Q4 validated
self-assessment and the final Global audit assessment (conducted in Feb/Mar 2018).
 Red Pillar at Q4 Zone Validation Audit
 Timeline (Section 3.6) deviations will result in BEP disqualification

Brewery and Soft Drink Operations


 Failure to be below the Total Extract Loss Hurdle Rate of 6.25%
 Failure to achieve LEF of 77.5% or higher
 Failure to achieve Water Consumption equal to or below 3.25 hL/hLN + RO
adjustment (no changes to the adjustment criteria; data updated and available in
monthly Water Ranking prepared and sent by Global).
Malting
 Customer complaints from the market for Gushing caused by proven malt production
issues (fusarium, ochratoxin).

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Verticalized Operations
 Red Status on Supplier Assessment for any month of current year (Red Status for 1
or more months)
 Failure to achieve Minimum Mandatory Sampling Plan (MMSP) equal or greater than
98%

Quality Related Disqualification Criteria

 The Operation cannot have any relevant facility-related quality incidents that result
in a recall. A recall is defined as the removal of products from the market due to food
safety issues that result in a real or perceived risk to the consumer and which
requires media and/or regulatory involvement
 Product Blocking Procedure Failure may disqualify a facility from Zone and Global
BEP competition

3.2 Disqualification from VPO Sustainability

The BEP recognizes sustainable excellence in Means and Results. As we undertake the
Sustainability journey together, we can expect to continuously raise the bar year after year
in Means performance to enable us to be able to deliver continuous improvement in Results.
An operation at the Sustainable level has consistently met and exceeded Means and Results
hurdle rates to demonstrate the use of the VPO process.

A brewery that is below the Sustainability Index Hurdle at H2 Zone Means and Results
Validation will be disqualified from the 2017 BEP as well as receive a Formal Letter from the
Zone Supply VP reminding them they must recover Sustainability Index Rates by end of the
following year. The Facility will also require the submission of a plan to Zone and Global.

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Flow chart to clarify Brewery Requirements to be BEP eligible and consequences to
those failing to achieve and maintain Sustainability

Sustainability Index was 1) The Facility and BOP receive a Formal Letter from
achieved at H2 Zone the Zone Supply VP reminding them they must recover
No
Validation Sustainability Index Rates by end of the following year.
(Means + Results) ≥ 80%
2) The facility should be placed at the Basic or
Intermediate level (according to their validated Means
Yes scores). This will determine what their next step will
be.

3) Facility will be required to submit to Zone and


Global an implementation plan for review.

Excellence Index was


achieved at H2 Zone
No
Validation
(Means + Results) ≥ 80%

Yes

Zero Quality, No
Environment, Media BEP Disqualification
Issues or major Audit
Findings?

Yes

BEP Hurdles achieved? No


LTI≤ 1 or 0
LEF≥77.5%
Water Consumption
≤3.25 hl/hlN
Extract Loss ≤6.25%
Sustainability Index≥ 80%
Excellence Index≥ 80%

Yes

BEP eligible

All Facilities should have visual communication showing at which VPO Level they
are at.

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3.3 Roles and Responsibilities

At the Global level, the VP Logistics and Operations is accountable for the program, and in
the Zone, the Supply VP is accountable for the Program together with the People Supply
Director. They are accountable for the launch & implementation of the program.
On a Global and Zone level, the Global VPO Program Owner and the Zone People and
Management Specialists are responsible for the launch, roll out and implementation of the
Brewery Excellence Program.

3.4 Target audience

The Target Audience for the 2017 Brewery Excellence Program is all Supply Operations
having formally achieved the Excellence or World Class levels up to the end of 2017, but
excluding any facilities which fall under disqualification criteria listed in section 3.0.
Brewery, Soft drink and Mixed brewery / soft drink operations comprise a class of
operations within the BEP while Verticalized operations form the other class.
Verticalized plants must be treated in Means and Results as a separate entity (e.g. for
combined Malt and Brewing plants), however if a disqualification situation occurs in the
combined entity, discretion must be used in terms of the disqualification decision.
Manufacturing operations that have combined facilities (both brewing and soft drinks) will
use a weighted average for the calculation of the Means and Results. Verticalized operations
in non-combined operations (e.g. can or malting plants) will be audited according to the
departmental structure found in the Verticalized VPO questionnaires. The Production
departments in these Operations should be scored as shown below.

Production 01 Production 02

Glass Batch through Hot end Cold end and packaging

Cans & Aluminum Bottles* Can Production Aluminum bottle production

Lids Production N/A

Crowns & ROPP Lithography Sacmi and packaging

Malt* Production N/A

Others Production N/A

*Malt: if independent offsite storage of malt or grain, Prod 01 and Prod 02 can be scored.
*Can: if NO aluminum bottle production, score N/A for Prod 02.

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3.5 Brewery Excellence Program material

The Brewery Excellence Program has the following materials to be used by each program
owner and pillar owners:
 Brewery Excellence Program Book: program guidelines and rules
 VPO Questionnaires: questions to be scored by Pillar – for submission of Self-
Assessments during the year
 Pillar Books and Supporting Documents

3.6 Calendar and Timeline


Please refer to the self and validation assessment flow as follows.
The 2017 / 2018 timeline for the Brewery Excellence Program in 2017 is as follows:

ACTIVITY DUE DATE ACCOUNTABLE

Distribution of the VPO EP material February 2017 Global VPO Owner


Plant and Zone VPO
1Q Means self-assessment April 7 2017
Submission of Means exception requests to Plant and Zone VPO
Global (N/A Pillar questions) - see section 3.7 May 2017
for details
2Q Means self-assessment with Zone Plant and Zone VPO
July 7 2017
validation
Plant
3Q Means self-assessment September 7 2017
Communicate ZEP celebration dates to Global Zone
November 2017
VPO
Submission of Means exception requests to Plant and Zone VPO
Global (N/A Pillar questions) - see section 3.7 November 2017
for details
4Q Means self-assessment January 8 , 2018 Plant and Zone VPO
4Q Results-assessment (BSC to provide Plant and Zone VPO
Results from VPO KPI Reporting, SCFD, January 17 , 2018
COGNOS, ZBB data)
Submission of KPI/Results exception requests Plant and Zone VPO
January 20 , 2018
to Global - see section 3.7 for details
5 Business days to review and correct results
January 24, 2018 Plant and Zone
from data closure
4Q Means and Results self-assessment results Plant and Zone
with zone validation for all facilities due to January 24, 2018
Global VPO Director
Zone VPO confidentially to
ZEP results to Global VPO Director and CSuO January 24, 2018
Global VPO Director
ZEP winners announced by January 26, 2018 Zone
Global BEP Audits Jan / Feb 2018 Global VPO audit team
Global BEP winners announced at SLC March 2018 Global Supply & People

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3.7. Concessions and non-applicable items

BEP KPI/Results Exception Requests


Exceptions will be considered by the Global VPO Director and Global KPI Owner(s).
Exception requests must be submitted by the Zone VPO SPOC only after Zone approval of
the exception(s). The submission process to Global must occur by January 20 th (after
closure of year results). KPI/Results exception requests should include the Zone, facility,
KPI name, target, actual facility achievement value and the business reason for the
exception request. Examples of reasons may include scope changes and Innovations/Craft
production (this is not an all-inclusive list). Note that the request could be in the case of
either a facility’s target not meeting the hurdle rate and/or the actual result not meeting the
hurdle rate.

BEP Means Exception Requests


All questions in the Brewery Excellence Program are applicable to the target audience in
each program. If a facility believes that any specific pillar block question is not-applicable
(N/A) to the facility or to a department, a formal request should be submitted to the Global
Program Owner to be analyzed. The Zone VPO SPOC should compile all N/A answers from
all facilities within the zone, and forward only the zone-approved N/A answer requests to
the Global VPO team, using the standard form for these requests. Further instructions are
included within the form. The submission of N/A requests to Global is due in May and
November. Any request out of the time period will not be considered.

Pillar Question NA
request form.xlsx

3.8. Means self-assessment

Means self-assessments must be done by the facilities on a monthly basis.


As part of the Brewery Excellence Program, Self-Assessment Q2 (June 2017) and Self-
Assessment Q4 (December 2017) must be validated by the Zone.
 Q1 self-assessment: to take place in March. It will reflect the current situation of
Means pillars. It is useful to detect gaps that should be closed by the end of the year
and create detailed action plans that can be supported and monitored by the Zone.
 Q2 self-assessment: to take place in June. It should reflect the midpoint current
situation of the Means pillars and will account for 30% of the Means points in BEP.

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This score is to be validated by the Zone. Zones must also monitor the sustainability
of Supply operations and formally inform them about the consequences of failing to
achieve sustainability by Q4.
 Q3 self-assessment: to take place in September. It is an intermediate check point
for the Zone, based on the evolution of the facilities in June, July and August.
 Q4 self-assessment: to take place in December 2017. It will be validated by the
Zone and will account for 70% of Means points in BEP.

3.9. Results Validation

Results KPIs in the BEP are the ones validated at the Global level by each Global function
responsible and Global PPM.

The BEP will use data collected directly from the Global VPO KPI Reporting tool, and Supply
operations will have time to review scores and conduct a review for accuracy, but must
follow existing company time guidelines and procedures to correct any data or target
revisions in the system, as only data in the system will be considered.

The Results Assessment Report will be used formally once per year in January 2018 to
validate the year end results against facility targets, or potentially Zone or Globally
stretched targets. The Zones and facilities can use the Result Assessment Report on a
monthly basis as a part of the Zone routine tracking and monitoring process. On a quarterly
basis (April, July, October, January), the quarterly results can be used to give a top 3
average score per Zone.

Results Scoring Guidelines (including Partial Achievement Rule)

Absolute performance improvement and Results are also an essential part of Sustainability,
as they are an outcome of the Means process. The ability to demonstrate constant
improvements in Results is an indication of VPO sustainability in the operation. Those
operations which continually challenge themselves with aggressive targets and goals should
be encouraged and recognized appropriately. BEP Results scoring will recognize aggressive
year over year performance target setting by providing partial achievement credit of such
targets.

• Full Credit – Achieving the Zone validated targets in the operation’s Results basket
will result in all associated BEP points to be assigned to that operation.

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• Partial Credit – If a brewery or a verticalized facility fails to achieve a Results basket
target but shows evolution Year over Year, partial credit will be awarded for that
particular target:

• Partial Achievement – Partial Achievement will be applied per the 3 standard


types of individual/entity achievement methods:

• Yes/No: Individual Targets that do not apply PA are “Go” or “No Go”.
E.g. ZBB does NOT apply Partial Achievement.
• Nominal Targets: On values in absolute terms (ONLY EBITDA, CASH
FLOW) the linear rule of 95% to 100% is applied.
• Organic Targets: For all other targets with numerical values (Volume,
SOM, VIC, CAPEX etc.) the existing Partial Achievement rule is applied
(80%-90%).

• The partial achievement rule follows the practice where the performance is
assessed organically vs. the previous performance period to evaluate the
percent (%) of the result. If a facility fails to show year over year evolution
for a particular target, no partial credit will be awarded regardless of the
score. The operation would only achieve points for meeting the target.
Standard PA rules will be used for financial targets (AC - LY vs. BU - LY).

All Targets will be assessed using data in the Global VPO KPI Tool.

3.10 Final score

Expressed by 30% of Q2 and 70% of Q4 scores of the pillar’s validated Means results + EOY
KPI Results:
(0.3 x Q2 Zone validated self-assessment) + (0.7 x Q4 Zone validated self-assessment final
evaluation) + Full year results = Total amount of points (Means and Results)

3.11. Global Evaluation (audit)

The Global VPO Director will coordinate the auditing of the Zone Excellence Program
winners. A Global Audit team will be created and the audit will be based on the Zone
validated Q4 self-assessment Means and Results audit. The Global Audit team will be
comprised of the Global Supply KPI / Pillar category owners, plus Zone Pillar expertise
where necessary.
If a disqualification situation occurs during the Global auditing of the top 3 Zone breweries
and verticalized plants, the subsequent Zone facilities in the ranking order (4 th, 5th, 6th and
7th place), may take the place of one of the top 3. Global Supply may choose to invite an
eligible facility from a different Zone to compete in the BEP. This will be a Global Supply
decision.

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The Global Audit team has the authority to adjust the Zone scores according to the Brewery
Excellence Program rules; their decision is final.
The objective of the Global Audit is to validate the Means categories and Results. It will also
help to identify possible improvement points and best practices. The facility audit will take
place in the Zone winning facility, or the facility which has the highest Zone Validated Final
Score and is not disqualified.

3.12 Recognition for the Zone and Global Brewery Excellence Program Winners

Zone Recognition

The Zone is responsible for recognizing its top facilities. Only collective recognition is
allowed, no individual performance should be recognized in the program. The Recognition
should occur during the Zone Annual Supply Convention and the communication of the best
performing entities should be totally confidential until the official announcement is made.

Global Recognition

There will be a Global recognition, taking place on an annual basis at the Senior Leadership
Convention (SLC) event, to recognize the TOP 3 Brewery/Soft Drink Zone Excellence
winners (gold, silver and bronze), plus the TOP 3 Verticalized facilities, based on total
amount of Zone / Global validated Points (Means + Results).

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
APPENDIX

1.1 Beverage Results Basket

Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


Total Recordable = number of LTI + MDI + MTI per 30 points TRIFR <= Budget or
Injuries Frequency 1.000.000 worked hours TRIFR in top 33 % global
Rate (TRIFR) PG-
K1115

Definition Source
GKPIT

Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


Brewery Injury Number of days of absence in Logistics 10 points if Severity Rate <=
Severity Rate and Production lost by the workforce, Budget or severity rate in top 33
PG-K1122 excluding the day of the accident , due %
to LTI (excluding Fatalities), divided by
total number of hours performed by
Logistics and production, multiplied by
1.000.000
Definition Source
GKPIT

Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


LTI PG-R1402 + LW-R1402 10 points
PGK-1113
Definition Source
Number of occupational injuries in the workforce in Plant (Logistics and Production) GKPIT
resulting in an incapacity for work of at least 1 day, excluding the day of the accident.

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Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


CLTI Number of occupational injuries of 10
PGK 1411 Contractors resulting in an incapacity
for work of at least 1 day, excluding
the day of the accident.
Definition Source
Occupational injuries of contractors that result in an incapacity for work of less than GKPIT
1 day * Commuting Lost Time
Injuries

Total Safety Basket 60 points

Environment / Compliance Business Risk


Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


Number of legal = number of non-compliances with legal 15 points if YTD ACT ≤ YTD BU
environmental authorities in a certain period 0 points if YTD ACT > YTD BU
non-compliances
PG-K1771
Definition Source
Number of legal non-compliance situations with all applicable international GKPIT
declarations/conventions/treaties and national/sub national, regional, and local
regulations associated with environmental issues in a certain period of time.

Environment / Compliance Business Risk


Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


% Non-compliance Non-compliance occurrence calculations 15 points if YTD ACT ≤ YTD BU
of Final Treated = (PG 1791 /(total number of 0 points if YTD ACT > YTD BU
Effluent PG - 1795 parameters analyzed taking in account
frequency of sampling))

Definition Source
# of non-compliant of the required effluent quality parameter in certain period. GKPIT

Environment

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Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


% of Recycling PG- (Weight of recycled byproducts and 5 points if YTD ACT ≥ YTD BU
K1701 waste in kg / total Weight of byproducts 0 points if YTD ACT < YTD BU
and waste in kg) * 100.
Definition Source
% of recycling is the ratio between the volume of byproducts and waste recycled into GKPIT
secondary materials versus the total production volume of byproducts and waste in a
certain period per unit.

Environment
Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


Number of "Organisations" can be pressure groups, 5 points if YTD ACT <= YTD BU
Environmental political parties, other companies etc.
0 points if YTD ACT > YTD BU
complaints by Complaints
neighbours or of authorities are excluded
organisations ”Significant” means in this context;
PG-R5613 - might result in action of the authorities
or;
- might result in a press release or;
- might damage the relations with the
neighbours or;
- might result in substantive
environmental damage (guidance: see E
pillar )
Definition Source
Number of significant environmental complaints uttered by neighbors or organizations in GKPIT
a certain period, per unit.(Complaints of authorities are excluded, considered as Legal
Non Compliance). "Organizations" can be pressure groups, political parties, other
companies etc.

Environment
Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


Water usage ratio KPI Formula: (PG-R2150 + PG-R2160 + 20
PG-K0510 PG-R2152 + PG-R2154 + PG-R5739
- ((PG-R5719 /10) + PG-R5740 +
PG-R5741) / (100 * PG-K0110)

Definition Source

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Hectoliters of water used to produce one normalized hectoliter of product GKPIT

Total Environment Basket 60 points

Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Plant PhysChem The KPI for "PhysChem Index by 15 points if YTD AC ≥ YTD BU
Index PG-K1211 Plant / Department" details the (Breweries)
calculation of the sub-department 20 points if YTD AC ≥ YTD BU (Soft
& department physchem indices. Drinks)
The Plant PhysChem Index is
calculated as the Brewing 0 points if YTD AC < YTD BU
Department Index x The Packaging
Department Index/100
Definition Source
Objective assessment of the PhysChem quality from wort to the finished GKPIT
product (including bulk transport, including License beers measured against
InBev tolerances or license tolerances (only in the case that they are tighter
than InBev tolerances), excluding trials). Definition: the number of analyses
in compliance with defined physchem standards, based on the mandatory
minimum samples schedule and the "out of specification (yellow + red zone)"
results reported. This is a level 2 KPI

Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Plant Micro Index The Plant Micro Index is calculated 15 points if YTD AC ≥ YTD BU
PG-K1221 as the average sum of the Brewing (Breweries)
Micro Index and Packaging Micro 20 points if YTD AC ≥ YTD BU (Soft
indices. Drinks)

0 points if YTD AC < YTD BU


Definition Source
Objective assessment of the microbiological quality achieved throughout the GKPIT
production process from wort to finished product (including bulk transport).
Definition: the number of analysis in compliance with defined microbiology
standards, based on mandatory minimum sample schedule.

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Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Plant Packaging See VPO.QUAL.3.1.16.2 10 points if YTD AC ≥ YTD BU
Index PG-K1250 (Breweries)
15 points if YTD AC ≥ YTD BU (Soft
Drinks)

0 points if YTD AC < YTD BU


Definition Source
Objective assessment of the quality of the final packaging (bottles in crates / GKPIT
trays, cans in trays, kegs on pallets, etc)
Packaging examined at a stated frequency and a defined scoring system used
to assess defects (yellow and red). Overall Packaging Index produced, which
is the weighted ;sum of the individual Filling Line Indices (can also be split
into packaging type, brand, etc).

Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Pre-Requisite KPI result entered as raw data 5 points if YTD AC ≥ YTD BU
Program (PRP) PG- (Breweries)
K1271 15 points if YTD AC ≥ YTD BU (Soft
Drinks)

0 points if YTD AC < YTD BU


Definition Source
Monthly PRP (GMP, Plant Hygiene and 5S) Audit performed by plant personnel GKPIT

Quality
Applicability: Brewery or Mixed Facility for Beer
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Brewery Support Average score (using I – 9 scale) 20 points if YTD AC ≥ YTD BU
Sensory Index PG- for all beers tasted in a month 0 points if YTD AC < YTD BU
K1260 (only for from each plant calculated for the
Breweries) Sensory Quality Rating tasting
Checkpoints Source
Objective assessment of the sensory quality of final packaged beers (detection GKPIT

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
of negative characteristics) from each plant assessed by Brewery Support
tasting panel. Definition: Samples of global and major brands sent by
each site to the Zone BS taste panel for analysis on a monthly basis
(published schedule). Samples of Global Brands tasted using the Branded
Sensory Quality Rating resulting in a branded SQR for each samples
(recalculated to a 1-9 scale). Samples of Major Brands tasted using the
category Sensory Quality Rating procedure resulting in a category Sensory
Quality Rating score for each sample (1-9 scale) This is a level 2 KPI.

Quality
Applicability: Soft Drinks or Mixed Facility for Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Soft Drink Sensory Average score (using I – 9 scale) 20 points if YTD AC ≥ YTD BU
Index PG-K1261 for all soft drinks tasted in a 0 points if YTD AC < YTD BU
month from each plant calculated
for the Sensory Quality Rating
tasting
Checkpoints Source
Objective assessment of the sensory quality of final packaged soft drinks GKPIT
(detection of positive and negative characteristics) from each plant
assessed by Brewery Support tasting panel. Samples of Global and major
brands sent by each site to the Zone BS taste panel for analysis on a
monthly basis (published schedule). Samples of Global Brands tasted using
the Pepsi Branded Sensory Quality Rating resulting in rating for each
sample (recalculated to a 1-9 scale). This is a level 2 KPI.

Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Consumer Number of Complaints / Units 30 points if YTD AC ≤ YTD BU
complaints bottles Produced (Breweries)
and cans PG-K1280 35 points if YTD AC ≤ YTD BU (Soft
Drinks)
0 points if YTD AC > YTD BU
Definition Source
The number of quality related consumer complaints for small packs per units GKPIT
produced in the month the complaints are received.

Quality
Applicability: Brewery
Owner Global Quality Pillar Owner

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Indicator Name Calculation Method Scoring
Packaging The number of analysis in 10 points if YTD AC ≥ YTD BU
Appearance (in the compliance with defined packaging 0 points if YTD AC < YTD BU
Market) PG-K1560 standards, based on mandatory
(only for Breweries) minimum sample schedule of
samples procured in key markets
Definition Source
Objective assessment of the packaging quality in the market based on the GKPIT
evaluation of samples procured in the market at predefined POS

Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Global Food Safety A Plant’s level of adherence to the 20 points if YTD AC ≥ YTD BU
Index (GFSI) company Food Safety Standards is 0 points if YTD AC < YTD BU
Readiness PG-K1521 assessed by scoring on a VPO Food
Safety Health Check (FSHC) Audit
form.
Definition Source
The objective of the Global Food Safety Initiative (GFSI) KPI is to assess the GKPIT
readiness of a Plant or Zone to a GFSI Audit.

Total Quality Basket 125 points

Performance
Applicability: Brewery, Soft Drinks
Owner Global Packaging Director

Indicator Name Calculation Method Scoring


GLY - Plant = (EPT b + EPT p + EPT c + EPT k + EPT s) x 100 30 points if YTD
Packaging Global (ST b + ST p + ST c + ST k + ST s) AC ≥ YTD BU
Consolidation Consolidation: 0 points if YTD
(excluding AC < YTD BU
The total packaging consolidation has to be made for the
blowing) plant packaging activity, excluding the blowing activities
PG-K0861 EPT b = consolidated effective production time of the glass
bottling lines
EPT p = consolidated effective production time of the PET
lines
EPT c = consolidated effective production time of the
canning lines
EPT k = consolidated effective production time of the
kegging lines
EPT s = consolidated effective production time of the

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special kegging lines
Definition Source
GKPIT

Performance
Applicability: Brewery, Soft Drinks
Owner Global Packaging Director

Indicator Name Calculation Method Scoring


LEF - Plant LEF = (EPT b + EPT p + EPT c + EPT k + EPT s) x100 15 points if YTD
Packaging Global (LET b + LET p + LET c + LET k + LET s) AC ≥ YTD BU
Consolidation Consolidation: The total packaging consolidation has 0 points if YTD
(excluding blowing) to be made for the plant packaging activity, excluding AC < YTD BU
PG-K1361 the blowing activities. EPT b = consolidated
Effective Production Time of the glass bottling lines
EPT p = consolidated Efective Production Time of the
PET lines EPT c = consolidated Effective Production
Time of the canning lines EPT k = consolidated
Effective Production Time of the kegging lines EPT s =
consolidated Effective Production Time of the special
kegging lines e.g. for EPT b EPT b = EPT glass
bottling line 1 + EPT glass bottling line 2…+ EPT glass
bottling line n
Definition Source
GKPIT

Performance
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner

Indicator Name Calculation Method Scoring


Brewery Total Total extract losses (%) = (extract 25 points if YTD AC ≤ YTD BU
Extract Losses losses*100)/ Extract processed 0 points if YTD AC > YTD BU
PG-K0650
Definition Source
A measure for the extract losses over the entire brewery, from raw materials GKPIT
intake till packaged goods. Total extract losses (%) = (extract losses*100)/
Extract processed.

Performance
Applicability: Brewery, Soft Drinks
Owner Global Maintenance Pillar Owner

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Indicator Name Calculation Method Scoring
TTP PG-K0410 (PG-K0110+PG-K0340)/(PG- 20 points if YTD AC ≤ YTD BU
R1010+PG-R1020)*1000 0 points if YTD AC > YTD BU
Definition Source
This metric measures the technical headcount required to attend a plant (from GKPIT
raw materials to packaged goods) to produce total volume in that plant.
Standardized Hectoliters (hl N) + Total Net Repacked Volume (hl) / Total
Hours Attended

Performance
Applicability: Brewery, Soft Drinks
Owner Global Maintenance Pillar Owner

Indicator Name Calculation Method Scoring


Mean Time Before Measures the equipment reliability 10 points if YTD AC ≥ YTD BU
Failure 0 points if YTD AC < YTD BU
PG K1660
YTD BU
Definition Source
Sum of the total run time (total number of minutes the machine was running GKPIT
as planned (LET) divided by total failures in a specified time period.

Performance
Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


Total Purchased (PG-K0521*3.6)+PG-K0531 25 points if YTD AC ≤ YTD BU
Energy PG-K0541 0 points if YTD AC > YTD BU

Definition Source
Total Energy Purchased by the plant divided by Standardized hectoliter of GKPIT
production

Total Performance Basket 125 points

Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner

Indicator Name Calculation Method Scoring


Service Level Brewery (Customer + Wholesaler + Inter- 15 points if YTD AC ≤ YTD BU
VPO Performance zone Export) Order volume (HL) 0 points if YTD AC >YTD BU
SL-K6500 non-OTIF Due to Unavailability
(including its supplied DCs) / Total

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Volume Required (Customer +
Wholesaler + Inter-zone Export)
including its supplied DCs
Definition Source
Service Level Brewery VPO Performance KPI reflects the unavailability in the entire GKPIT
supply chain, it measures how much required order volume (HL) from customers,
wholesalers and inter-zone export that was not delivered OTIF in the brewery and
its supplied DCs (defined in SNP - allocation plan at SKU level) due to the reason
of unavailability, in the total required order volume from customers, wholesalers
and inter-zone export in the brewery and its supplied DCs.

Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner

Indicator Name Calculation Method Scoring


Inventory Out of Inventory OOR = (0.7*Total HL 15 points if YTD AC ≤ YTD BU
Range out of Range Stockout/Total HL 0 points if YTD AC >YTD BU
LS-K8250 Level Stockout + 0.3 * Total HL
out of Range Stockover/Total HL
Level Stockover
Definition Source
Percent of inventory out of range for Stockout and Stockover GKPIT

Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner

Indicator Name Calculation Method Scoring


Plant Network A = 1st Tier Volumes 15 points if YTD AC≥ YTD BU
Productivity LP- B = Total of hours attended 0 points if YTD AC <YTD BU
K1110 (including overtime) by all
warehousing workers in the
Plant Network during the period
Formula : A / B
Definition Source
Equals the number of 1st Tier hectoliters per man-hour in the plant network GKPIT
during the period.
The measure of productivity is calculated by dividing the 1st Tier volumes by
the total of hours performed (including overtime) by all warehousing
workers (direct and indirect; payroll seasonal, interims and outsourced) in
the plant network during the period.

Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner

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Indicator Name Calculation Method Scoring
Downtime caused by DCBL = 100 * Total Logistics Causes 10 points if YTD AC ≤ YTD BU
Logistics Downtime / Total Available 0 points if YTD AC >YTD BU
LS-K8021 Production Line Time
Definition Source
Measures the percentage of time lost due to mistakes over logistics tasks or GKPIT
activities (direct affect over the stoppage of production line filler)

Total Logistics Basket 55 points

Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM

Indicator Name Calculation Method Scoring


Total Operational The actual should show a positive 25 points if Perf Var ≥ 0
VIC Performance performance variance figure 0 points if YTD AC < 0
variance
Definition Source
Based on flexible budget (excluding volume-mix impact). In NA should SCFD
exclude Packaging, Agriculture and PPG. Performance only (excluding Price).

Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM

Indicator Name Calculation Method Scoring


Total Viability Budget and Actual 5 points if AC (organic) ≤ BU
(Upholding ESL+Q) 0 points if AC (organic)>BU
CAPEX for production
Definition Source
Explanation is given in “Global Investment Procedures” glossary Capex

Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM

Indicator Name Calculation Method Scoring


Total Tier 1 VLC Perf Performance variance 15 points if Perf Var ≥ 0
Variance 0 points if YTD AC < 0
Definition Source

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Excludes volume/mix and currency impact. The actual should show a positive SCFD
performance variance figure.

Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM

Indicator Name Calculation Method Scoring


FILC FILC = FIC+FLC 10 points if Perf Var ≥ 0
0 points if YTD AC < 0
Source
SCFD

Total Financials Basket 55 points

People
Applicability: Brewery, Soft Drinks
Owner Global Talent Management Director

Indicator Name Calculation Method Scoring


People Turnover 100 * PG-R1310 / PG-R1311 20 points if YTD AC ≤ YTD BU
PG-K1091 0 points if YTD AC > YTD BU
Definition Source
Number of people who left the company (YTD) divided by the average YTD GKPIT
headcount (counted at the last day of the month)

Total People Basket 20 points

Total Results Basket 500 points

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1.1.1 Beverage Results Basket Summary

Points
 
KPI Basket KPIs Brewery SD Mixed
Total Recordable Injuries Frequency Rate (TRIFR) 30 30 30
Injury Severity Rate 10 10 10
Safety
LTI 10 10 10
CLTI 10 10 10
Number of legal environmental non-compliances 15 15 15
% Non-compliance of Final Treated Effluent 15 15 15
Environment % of Recycling 5 5 5
Number of Environmental complaints by neighbours or organisations 5 5 5
Water Usage Ratio 20 20 20
Plant PhysChem Index (%) 15 20 15
Plant Micro index (%) 15 20 15
Plant Packaging Index (%) 10 15 10
Pre-Requisite Program (PRP) 5 15 5
Quality
Brewery Support Sensory Index (only Brewery) 20 - 20
Consumer Complaints bottles and cans (ppb) - YTD 30 35 30
Packaging Appearance in the market (only Brewery) 10 - 10
Global Food Safety Index (GFSI) 20 20 20
GLY consolidated 30 30 30
LEF consolidated 15 15 15
18 - Brewery
Total Extract Losses (%) 25 25
Performance 7 - SD
TTP 20 20 20
MTBF 10 10 10
Total Purchased Energy 25 25 25
Service Level Brewery VPO Performance 15 15 15
Inventory Out of Range 15 15 15
Logistics
Plant Network Productivity 15 15 15
Downtime Caused by Logistics 10 10 10
Total Operational VIC Performance variance 25 25 25
Total Viability (Upholding ESL + Q) CAPEX for Production 5 5 5
Financials
Total TIER 1 VLC Performance variance 15 15 15
FILC 10 10 10
People People Turnover 20 20 20
Total 500 500 500

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1.2 Verticalized Results Basket

Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


Total Recordable = number of LTI + MDI + MTI per 40 points TRIFR <= Budget
Injuries Frequency 1.000.000 worked hours
Rate (TRIFR)
*“XX” = Coding initial letters vary
XX-K1415*
depending on the Commodity Type (eg:
CA for Cans, CR for Crowns, MA for
Malting, GL for Glass)
Definition Source
GKPIT

Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


Injury Severity Number of days of absence in Logistics 10 points if Severity Rate <=
Rate and Production lost by the workforce, Budget
XX-K1421* excluding the day of the accident , due
to LTI (excluding Fatalities), divided by
total number of hours performed by
Logistics and production, multiplied by
1.000.000

*“XX” = Coding initial letters vary


depending on the Commodity Type (eg:
CA for Cans, CR for Crowns, MA for
Malting, GL for Glass)
Definition Source
GKPIT

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Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


LTI Number of occupational injuries in the 10 points if <= Budget
XX-K1402* workforce in Plant (Logistics and
CG-R1422 for Corn Production) resulting in an incapacity
Grits for work of at least 1 day, excluding the
day of the accident.
MA-R1402 for
Malting
*“XX” = Coding initial letters vary
depending on the Commodity Type (eg:
CA for Cans, CR for Crowns, MA for
Malting, GL for Glass)
Definition Source
GKPIT

Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner

Indicator Name Calculation Method Scoring


CLTI Number of occupational injuries of 10 points if <= Budget
XX-K1410* Contractors resulting in an incapacity
for work of at least 1 day, excluding the
day of the accident.

*“XX” = Coding initial letters vary


depending on the Commodity Type (eg:
CA for Cans, CR for Crowns, MA for
Malting, GL for Glass)
Definition Source
Occupational injuries of contractors that result in an incapacity for work of less than 1 GKPIT
day * Commuting Lost Time Injuries

Total Safety Basket 70 Points

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Better World
Applicability: Verticalized Operations
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


% of Recycling = (Weight of recycled byproducts and If YTD AC ≥ YTD BU:
XX-K1700* waste in kg / total Weight of byproducts Malt, Sand, Grits = 10 points
and waste in kg) * 100. Glass, Crowns, Labels, Lids, Rice,
Hops = 20 points
*“XX” = Coding initial letters vary Cans, SD Conc. = 15 points
depending on the Commodity Type (eg:
CA for Cans, CR for Crowns, MA for 0 points if YTD AC < YTD BU
Malting, GL for Glass)
Definition Source
% of recycling is the ratio between the volume of byproducts and waste recycled into GKPIT
secondary materials versus the total production volume of byproducts and waste in a
certain period per unit.

Better World
Applicability: Verticalized Operations
Owner Global Environmental Pillar Owner

Indicator Name Calculation Method Scoring


Number of legal =number of non-compliances with legal If YTD AC ≤ YTD BU:
non-compliances authorities in a certain period Malt, SD Conc., Cans, Grits = 20
(MAJOR) points
XX-K1771* *“XX” = Coding initial letters vary Glass, Crowns, Labels, Lids, Rice,
depending on the Commodity Type (eg: Hops = 30 points
CA for Cans, CR for Crowns, MA for Sand = 35 points
Malting, GL for Glass)
0 points if YTD AC > YTD BU
Definition Source
Number of legal non-compliance situations with all applicable international GKPIT
declarations/conventions/treaties and national/sub national, regional, and local
regulations associated with environmental issues in a certain period of time.

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Better World
Applicability: Verticalized Operations
Owner Global Environmental Pillar Owner

Indicator Name Calculation Method Scoring


% Non-compliance 100*(XX-K1791/XX-K7012) If YTD AC ≤ YTD BU:
of Final Treated Malt, SD Conc., Cans, Grits =
Effluent In other words: 20 points
XX-K7010* VOP's Non-compliance occurrence Glass, Sand = 10 points
calculations (%) = 100* (# of non- N/A to Crowns, Labels, Lids,
compliances of the required quality Rice, Hops.
parameters for the treated effluent in a
certain period / Total number of parameters 0 points if YTD AC > YTD BU
analyzed taking in account frequency of
sampling)

KPI XX-1791 is "Quality of treated effluent",


which means # of non-compliances of the
required quality parameters for the treated
effluent in a certain period (number of quality
parameters effluent out of norm).

*“XX” = Coding initial letters vary depending


on the Commodity Type (eg: CA for Cans, CR
for Crowns, MA for Malting, GL for Glass)
Definition Source
% of non-compliances of the required quality parameters for the treated effluent in a GKPIT
certain period. Required quality parameters are those final effluent parameters that are
either required by local/national discharge permits/contracts or that are mandated by
zone ES/BTS specialist

Better World
Applicability: Verticalized Operations
Owner Global Environmental Pillar Owner

Indicator Name Calculation Method Scoring


Water usage Ratio KPI Formula*: If YTD AC ≤ YTD BU:
XX-K0510* For Cans and Mating: Malt, Grits = 20 points
(XX-R2160 + XX-R2170 + XX- Glass = 10 points
R2180 + XX-R2190 - (XX-R2195 + Cans, Sand, SD Conc. = 15 points
XX-R2196)) / XX-K1100 N/A to Crowns, Labels, Lids, Rice,
Hops.
For Crowns and Labels:
(XX-R2160 + XX-R2170 + XX- 0 points if YTD AC > YTD BU
R2180 + XX-R2190 - (XX-R2195 +
XX-R2196)) / XX-R2001

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For Others:
(XX-R2160 + XX-R2170 + XX-
R2180 + XX-R2190 - (XX-R2195 +
XX-R2196)) / XX-R2000

*“XX” = Coding initial letters vary


depending on the Commodity Type
(eg: CA for Cans, CR for Crowns,
MA for Malting, GL for Glass)
Definition Source
Volume of water used to produce a standard amount of product (Standard GKPIT
amount means the same unit used to measure the amount of production).

Total Better World Basket 70 Points (total points vary by Commodity)

Quality
Applicability: Verticalized Operations
Owner Global Quality Director – Verticalized Operations

Indicator Name Calculation Method Scoring


Customer Complaints For Packaging Vertical Operations: 40 points if YTD AC ≤ YTD BU
(DMRs) Number of Customer Complaints 0 points if YTD AC > YTD BU
Coding*: (DMR) per month / units of materials
Cans and Lids: XX-K1501 produced in that month   x
1000,000,000 = ppb
Malting: MA-K1482
Others: XX-K1500
For Malting Operations: Number of
Customer Complaints (DMR) per
month / metric tons produced in that
month x 1000,000,000 = ppb

*“XX” = Coding initial letters vary


depending on the Commodity Type
(eg: CA for Cans, CR for Crowns, MA
for Malting, GL for Glass)
Definition Source
The number of ALL customer complaints per unit of materials produced by GKPIT
Verticalized Operations in the month the complaints are received.

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Quality
Applicability: Verticalized Operations
Owner Global Quality Director – Verticalized Operations

Indicator Name Calculation Method Scoring


Suppliers A Verticalized Plant is a Supplier to ABI 20 points if YTD status =
Assessment Breweries. ABI breweries assess Verticalized GREEN (category 1)
XX-K5301* Plants either: 0 points if YTD status =
- GREEN (category 1), YELLOW (category 2) or RED
- YELLOW (category 2), (category 3)
- RED (category 3).
This is the assessment to be reported by an
individual Verticalized plant. Consolidation of
Verticalized plants at Zone level is based on
the lowest rating i.e. if there are 5 Glass
plants & 3 are assessed GREEN, 2 YELLOW &
1 RED, then the Glass Plants at Zone level
are reported RED.
REPORT THE CATEGORY ASSESSED by
Breweries to an individual Verticalized Plant:
- Report as "1" for GREEN
- Report as "2" for YELLOW
- Report as "3" for RED

*“XX” = Coding initial letters vary depending


on the Commodity Type (eg: CA for Cans,
CR for Crowns, MA for Malting, GL for Glass)
Definition Source
A supplier is assessed RED, YELLOW or GREEN by ABI breweries based on GKPIT
compliance to Food Safety & Performance standards of materials supplied.
These are determined through Means: Supplier Audits, MCRS & Results: DMRs
or Customer complaints.

Quality
Applicability: Verticalized Operations
Owner Global Quality Director – Verticalized Operations

Indicator Name Calculation Method Scoring


Global Food Safety A Plant’s level of adherence to the If YTD AC ≥ YTD BU:
Index (GFSI) company Food Safety Standards is Rice, Hops = 30 points
Readiness assessed by scoring on a VPO Food Others = 20 points
XX-K1280* Safety Health Check (FSHC) Audit
form.
0 points if YTD AC < YTD BU

*“XX” = Coding initial letters vary


depending on the Commodity Type
(eg: CA for Cans, CR for Crowns,

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
MA for Malting, GL for Glass)
Definition Source
The objective of the Global Food Safety Initiative (GFSI) KPI is to assess the GKPIT
readiness of a Plant or Zone to a GFSI Audit.

Quality
Applicability: Malting Operations
Owner Global Quality Director – Malting Operations

Indicator Name Calculation Method Scoring


Malting Plant % Achieved of PhysChem Index target If YTD AC ≥ YTD BU:
PhysChem Index This KPI is comprised of 6 key parameters that are 20 points
(off-kiln) rolled into the PhysChem Index Off Kiln: Extract, 0 points if YTD AC <
MA-K1113 Colour, FAN, S/T or Kolbach Index, DP, Beta YTD BU
Glucan. The weightings for the stages in the
process are Steeping 10%, Germination 10%, Off
Kiln 60% and Standard Deviations % achieved
20%. Standard deviations greater than the target
result in a proportion score. Standard deviations at
or below Target achieves at 100% target
Definition Source
Covers 6 Parameters: Extract, FAN, S/T, DP, Beta Glucan, Color GKPIT

Quality
Applicability: Labels Operations
Owner Global Quality Director – Verticalized Operations

Indicator Name Calculation Method Scoring


Pre-Requisite KPI result entered as raw data 20 points if YTD AC ≥ YTD BU
Program (PRP) 0 points if YTD AC < YTD BU
LA-K1271
Definition Source
Monthly PRP (GMP, Plant Hygiene and 5S) Audit performed by plant personnel GKPIT

Total Quality Basket 80 Points (total points vary by Commodity)

Performance
Applicability: Verticalized Operations
Owner Global Directors - Verticalized Operations

Indicator Name Calculation Method Scoring


GLY Equivalent GLASS Pack to Melt - GL-K1005 40 points if YTD AC
CANS Gross Line Yield (GLY) - CA-R0880 ≥ YTD BU
MALT Gross Line Yield - MA-R0880 0 points if YTD AC

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CROWNS Gross Line yield (GLY) - CR-R0880 < YTD BU
LIDS Gross Line Yield (GLY) - LD-R0880
Definition Source
Determined by commodity (according to definitions on KPI Book) GKPIT

Performance
Applicability: Verticalized Operations
Owner Global Directors - Verticalized Operations

Indicator Name Calculation Method Scoring


Spoilage / Process Determined by commodity If YTD AC ≤ YTD BU:
Losses (according to calculations on KPI Rice, Hops, Sand, Grits = 35 points
All except Malting: Book) Glass, SD Conc., Cans = 20 points
XX-K1120* Crowns, Labels, Lids = 30 points
*“XX” = Coding initial letters vary
depending on the Commodity Type 0 points if YTD AC > YTD BU
(eg: CA for Cans, CR for Crowns,
GL for Glass)
Definition Source
Determined by commodity (according to definitions on KPI Book) GKPIT

Performance
Applicability: Malting Operations
Global Director – Malting Operations

Indicator Name Calculation Method Scoring


Clean Barley to Malt Equals the quotient (as a If YTD AC ≥ YTD BU: 35 points
Yield percentage) resulting from the 0 points if YTD AC < YTD BU
MA-K1150 total amount of clean barley sent
to steep divided by the total clean
malt produced

((MA-R1100-MA-K1100)/MA-
R1100)*100
Definition Source
Clean barley defined as the weight of the barley sent to steep after all GKPIT
cleaning / aspiration processes have occurred. If a weigh scale is unavailable
after cleaning processes then an estimation of the clean-out % should be
done.

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Performance
Applicability: Verticalized Operations
Owner Global Directors - Verticalized Operations

Indicator Name Calculation Method Scoring


Total Technical For Packaging Vertical Operations: 20 points if YTD AC ≤ YTD BU
Productivity (Direct = Total Units Produced / (Total 0 points if YTD AC >YTD BU
Productivity) hours attended "hourly employees"
XX-K2201* + Total hours attended "monthly
employees")
For Malting Operations:
= Total Tons of Malt produced /
(Total hours attended "hourly
employees" + Total hours attended
"monthly employees")

KPI Formula*: XX-K1100 / (XX-


R1010 + XX-R1020)

Unit of Measure for Total Units


Produced changes according to
each Commodity.

*“XX” = Coding initial letters vary


depending on the Commodity Type
(eg: CA for Cans, CR for Crowns,
MA for Malting, GL for Glass)
Definition Source
This KPI measures the quantity of finished goods produced per the number of GKPIT
labor hours required

Performance
Applicability: Verticalized
Owner Global Directors - Verticalized Operations

Indicator Name Calculation Method Scoring


Preventive (Shutdown PM tasks completed XX-R5508) / 25 points if YTD AC
Maintenance (Shutdown PM tasks scheduled XX-R5507) *100 ≥ YTD BU
Completion Rate 0 points if YTD AC <
(PMCR) *“XX” = Coding initial letters vary depending on the YTD BU
XX-K1640* Commodity Type (eg: CA for Cans, CR for Crowns,
MA for Malting, GL for Glass)
Definition Source
Measure of the percentage of shutdown PM tasks that were completed vs the GKPIT
total number scheduled.

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Performance
Applicability: Verticalized
Owner Global Directors - Verticalized Operations

Indicator Name Calculation Method Scoring


Change Over Time Determined by commodity 20 points if YTD AC ≤ YTD BU
(COT) (according to calculations on KPI N/A to Malt, Rice, Hops, Sand, Grits.
XX-K0160* Book)
0 points if YTD AC >YTD BU
*“XX” = Coding initial letters vary
depending on the Commodity Type
(eg: CA for Cans, CR for Crowns,
MA for Malting, GL for Glass)
Definition Source
Determined by commodity (according to definitions on KPI Book) GKPIT

Performance
Applicability: Verticalized Operations
Owner Global Environment Pillar Owner

Indicator Name Calculation Method Scoring


Total Purchased KPI Formula*: (3.6 * XX-K0521) + If YTD AC ≤ YTD BU:
Energy XX-K0531 Malt, Glass, SD Conc., Cans, Sand,
XX-K0541* Grits = 30 points
*“XX” = Coding initial letters vary Crowns, Labels, Lids, Rice, Hops = 40
depending on the Commodity Type points
(eg: CA for Cans, CR for Crowns,
MA for Malting, GL for Glass) 0 points if YTD AC > YTD BU
Definition Source
Determined by commodity (according to definitions on KPI Book) GKPIT

Total Performance Basket 155 Points (total points vary by Commodity)

Logistics
Applicability: Verticalized Operations
Owner Global Logistics Pillar Owner

Indicator Name Calculation Method Scoring


Logistics Cost (Total SCFD VLC + FLC) / (Total If YTD AC ≤ YTD BU:
Volume Produced) Malt, Rice, Hops, Sand, Grits = 20
points
UOM of Volume produced = 1000 Glass, Crowns, SD Conc., Labels,
units for Packaging Vertical Cans, Lids = 15 points
Operations, and Metric tons for

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Malting Operations.
0 points if YTD AC >YTD BU
Definition Source
Total Logistics cost divided by total production. Total Logistics Cost is defined SCFD & GKPIT
per SCFD.

Logistics
Applicability: Verticalized Operations
Owner Global Logistics Pillar Owner

Indicator Name Calculation Method Scoring


Volume Plan Equals 1 minus the Sum of monthly absolute 40 points if YTD AC ≥
Attainment deviation between Production Plan and Actual YTD BU
XX-K2400* Production as related to the total of Production Plan. 0 points if YTD AC <
YTD BU
100 * (Sum of the Planned Production - Sum of
deviations between Planned Production and Actual
Production Total) / Sum of the Planned Production

KPI Formula*: 100 * (XX-R3000 - XX-R3010) / XX-


R3000

*“XX” = Coding initial letters vary depending on the


Commodity Type (eg: CA for Cans, CR for Crowns,
MA for Malting, GL for Glass)
Definition Source
Volume Plan Attainment measures monthly deviation between Production GKPIT
Plan and Actual Production volumes against monthly Production Plan
volumes.

Total Logistics Basket 55 Points (total points vary by Commodity)

Financials
Applicability: Verticalized Operations
Owner Global PPM

Indicator Name Calculation Method Scoring


Conversion Cost (Total SCFD VIC + FIC) / (Total 40 points if YTD AC ≤ YTD BU
Volume Produced) 0 points if YTD AC >YTD BU

UOM of Volume produced = 1000


units for Packaging Vertical
Operations, and Metric tons for
Malting Operations.
Definition Source
Total cost of goods produced divided by total production. Cost of goods is SCFD & GKPIT

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defined per SCFD as Operational VIC, Other VIC, FIC, but should exclude
commodity cost (source: CCT - Commodity Coverage Tracker). Operational
or other VIC should include cost of losses as applicable netted by byproduct
revenue. Cost of goods does not include costs below EBITDA such as
Depreciation or Amortization costs.

Total Financials Basket 40 Points

People
Applicability: Verticalized Operations
Owner Global Talent Management Director

Indicator Name Calculation Method Scoring


People Turnover KPI Formula*: 100 * XX-R1310 / 30 points if YTD AC ≤ YTD BU
XX-K1091* XX-R1311 0 points if YTD AC > YTD BU

*“XX” = Coding initial letters vary


depending on the Commodity Type
(eg: CA for Cans, CR for Crowns,
MA for Malting, GL for Glass)
Definition Source
Number of people who left the company (YTD) divided by the average YTD GKPIT
headcount (counted at the last day of the month).

Total People Basket 30 points

Total Verticalized Results Basket 500 points

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
1.2.1 Verticalized Results Basket – Summary of Applicability and Points by Commodity

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2.0 KPIs with partial achievement
2.1 Beverage Operations
KPI Partial
Basket KPI
Code Achievement
Safety Total Recordable Injuries Frequency Rate (TRIFR) PG-K1115 Yes
Safety Brewery Injury Severity Rate PG-K1122 Yes
Better World % non-compliance of Final Treated Effluent PG-K1795 Yes
Better World % of Recycling PG-K1701 Yes
Better World Water usage Ratio PG-K0510 Yes
Quality Plant PhysChem Index PG-K1211 Yes
Quality Plant Micro Index PG-K1221 Yes
Quality Plant Packaging Index PG-K1250 Yes
Quality Pre-Requisite Program (PRP) PG-K1271 Yes
Quality Brewery Support Sensory Index PG-K1260 Yes
Quality Soft Drink Sensory Index PG-K1261 Yes
Quality Consumer complaints bottles and cans PG-K1280 Yes
Quality Packaging Appearance (in the Market) PG-K1560 Yes
Performance GLY - Plant Packaging Global Consolidation (excluding blowing) PG-K0861 Yes
Performance LEF - Plant Packaging Global Consolidation (excluding blowing) PG-K1361 Yes
Performance Brewery Total Extract Losses PG-K0650 Yes
Performance TTP PG-K0410 Yes
Performance Mean Time Before Failure PG-K1660 Yes
Performance Total Purchased Energy PG-K0541 Yes
Logistics Inventory Out of Range LS-K8250 Yes
Logistics Plant Network Productivity LP-K1110 Yes
Logistics Downtime caused by Logistics LS-K8021 Yes
KPI Partial
Basket KPI
Code Achievement
Safety LTI PGK-1113 No
Safety CLTI PGK 1411 No
Better World Number of legal environmental non-compliances PG-K1771 No
Number of Environmental complaints by neighbours or
Better World PG-R5613 No
organisations
Quality Global Food Safety Index (GFSI) Readiness PG-K1521 No
Logistics Service Level SL-K6500 No
Finance Total Operational VIC Performance variance - No
Finance Total Viability (Upholding ESL+Q) CAPEX CAPEX for production - No
Finance Total Tier 1 VLC Perf Variance - No
Finance FILC - No
People People Turnover PG-K1091 No
2.2 Verticalized Operations

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Partial
Basket KPI KPI Code
Achievement
Safety Total Recordable Injuries Frequency Rate (TRIFR) XX-K1415 Yes
Safety Brewery Injury Severity Rate XX-K1421 Yes
Better World Number of legal non-compliances (MAJOR) XX-K1771 Yes
Better World % non-compliance of Final Treated Effluent XX-K7010 Yes
Better World % of Recycling XX-K1700 Yes
Better World Water usage Ratio XX-K0510 Yes
Cans and Lids: XX-K1501
Quality Customer complaints Malting: MA-K1482 Yes
Others: XX-K1500
Quality Malting Plant PhysChem Index XX-K1111 Yes
Glass: GL-K1005
Performance GLY equivalent (except for Malting operations) Yes
Others: XX-R0880
Performance Total Technical Productivity (Direct Productivity) XX-K2201 Yes

Performance Spoilage / Process Losses XX-K1120 Yes


Performance Maintenance Health Index XX-K1650 Yes
Performance Total Purchased Energy XX-K0541 Yes
Performance Clean Barley to Malt Yield XX-K1150 Yes

Partial
Basket KPI KPI Code
Achievement
Safety LTI XX-K1402 No
Safety CLTI XX-K1410 No
Quality Global Food Safety Index (GFSI) Readiness XX-K1280 No

Quality Pre-Requisite Program LA-K1271 No

XX-K5301 (Report 1 for


Quality Suppliers Assessment green, 2 for yellow, 3 for No
red status)
Performance Change Over Time (COT) XX-K0160 No
Performance GLY equivalent Malt Malt: XX-R0880 No
Logistics Logistics Cost - No
Logistics Production Plan Attainment XX-K2400 No
Finance Conversion Cost - No
People People Turnover XX-K1091 No

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
3.0 Questionnaire Scoring Weight

57
© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
4.0 Results Basket for Mixed Plants

Quality
Applicability: Mixed Brewery and Soft Drinks

Partial
Indicator Name Code Source Owner Scoring
Achievement
VOLUME WEIGHTED Volume
AVERAGE weighted
Artemio
Plant PhysChem Index average PG- GKPIT 15 points Yes
Pigatto
Beer - Plant PhysChem K1211 and
Index SD PG-K1211
Volume
VOLUME WEIGHTED
weighted
AVERAGE Plant Micro Artemio
average PG- GKPIT 15 points Yes
Index Beer - Plant Micro Pigatto
K1221 and
Index SD
PG-K1221
Volume
VOLUME WEIGHTED
weighted
AVERAGE Plant Artemio
average PG- GKPIT 10 points Yes
Packaging Index Beer - Pigattto
K1250 and
Plant Packaging Index SD
PG-K1251
VOLUME WEIGHTED Volume
AVERAGE Pre-Requisite weighted
Artemio
Program (PRP) Beer - average PG- GKPIT 5 points Yes
Pigatto
Pre-Requisite Program K1271 and
(PRP) SD PG-K1273
Brewery Support Sensory Artemio
PG-K1260 GKPIT 20 points Yes
Index (only Brewery) Pigatto
VOLUME WEIGHTED
Volume
AVERAGE Consumer
weighted
complaints bottles and Artemio
average PG- GKPIT 30 points Yes
cans Beer - Consumer Pigatto
K1280 and
complaints bottles and
PG-K1281
cans SD
Packaging Appearance (in
Artemio
the Market) PG-K1560 GKPIT 10 points Yes
Pigatto
(only Brewery)
Global Food Safety Index
Artemio
(GFSI) Readiness - Plant PG-K1521 GKPIT 20 points No
Pigatto
Score
125
Total Quality Basket  
points

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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Performance
Applicability: Mixed Brewery and Soft Drinks

Partial
Indicator Name Code Source Owner Scoring
Achievement
GLY - Plant Packaging
Global 30
Global Consolidation PG-K0861 GKPIT Yes
Packaging points
(excluding blowing)
LEF - Plant Packaging
Global 15
Global Consolidation PG-K1361 GKPIT Yes
Packaging points
(excluding blowing)
Brewery Total Extract Global 18
PG-K0650 GKPIT Yes
Losses Quality points
Soft Drinks + Fabs Total Global
PG-K0690 GKPIT 7 points Yes
Extract Losses Quality
TTP - Plant Packaging PG – 20
GKPIT   Yes
Global Consolidation K0410 points
Mean Time to Failure - Global
PG – 10
Plant Packaging Global GKPIT Maintenan Yes
K1660 points
Consolidation ce
Total Purchased Energy -
Global 25
Plant Packaging Global PG-K0541 GKPIT Yes
E&F  points
Consolidation
125
Total Performance Basket  
points

59
© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
This BEP handbook will also be posted to our Global VPO Portal where
any future required updates in 2017 will be maintained.

https://anheuserbuschinbev-d8c15f9877fe61.sharepoint.com/sites/VPO/IBEVVPO
Go to: Home Page > Complimentaries > BEP > Handbook

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