Welcome to

Peru & ATE

August 24, 2017

 Please follow these recommendations at all time
Safety Video during your visit

COPEC Supply 2
Logistics Market & Operational Insights
Peru

COPEC Supply 3
PERU - LOGISTICS
Market & Operation Insights
Footprint Actual Logistics Team
3rd
Peru Payroll
Parties
Total
Logistics Head Count 1,489 3,069 4,558
14.4 million hl Fleet
beer sold
per year Mechanical Handling 3rd
Owned Rented Total
Equipment Parties
Number of FLTs (doubles) 121 0 0 121
Population
31 million Number of FLTs (singles) 64 00 64
3 rd
41 Trucks Owned Rented Total
liters PER Number of T1 Trailers 82 0
Parties
280 362
Average CAPITA
Beer Number of T2 Trucks 661 0 20 681
Consumpti
on Key attributes T1 T1 Interlink T2
5 Wet depots Hl capacity per vehicle (avg.) 157 196 52
37 Dry depots Average number of pallets
24 30 8
per vehicle

Our Fleet Key Projects

• Increase Transport productivity in T2 - Decrease
crew per truck from 3.6 to 3.2 crew (TLP).
• New Barges - Build new barges to reduce renting and
fuel consumption and increase transport capacity,
• T1 Own Fleet Optimization - Maximize own-fleet
benefits, establishing the best fleet allocation per route.

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Ate DC Executive Summary

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PERU – WET DEPOT ATE
Operation Insights
Location Actual Logistics Team
3rd
Payroll Total
Parties
Total HC
Logistics Head Count 218 479 697
697

Fleet
8.9 Mechanical Handling 3rd
MHL Owned Rented Total
Equipment Parties
Mobiliz 7 T2 LO Number of FLTs (doubles) 33 6 0 33
ed per
year Electric Pallet Handler 11 0 0 11
3 rd
Trucks Owned Rented Total
Parties
1 WH LO Number of T1 Trailers 53 0 58 111
For Bottle SortingNumber of T2 Trucks 93 0 0 0

Ate Wet
Depot

Capacities Key Insights

80% of
T1 T2 WH areas: WH capacity:
products
180 110 with Covered: 30,000 29.800 pallets
Trips per Trips per day Returnable
day m2 25.000 pallets
bottles
Empties: 24,000 18 docks
m2
Load/unload: 6
4,500 m2
PERU – WET DEPOT ATE
Executive Summary
Safety Dashboard –
Safety
JULY YTD FY Workplace Transport
BGT ACT BGT ACT BGT LE Safety
Fatality
Ate
LTI 3 12 12 20 14
0% 20% 40% 60% 80% 100%
MDI NA NA NA
Safety Plan & Actions
MTI NA NA 1 NA
• DPO 4.0 - Pending transit plan and pedestrians-vehicles
FAI NA NA 2 NA segregation that required capex (pedestrian routes change)

UA + UC UA: 5 UA: 10
UC: 7 UC: 26

VDOT TOP KPIs

YTD Jul UNIT BGT ACT VAR

95.9 96.2 VDOT % 10.3 8.2 -2.1

94.4
92.6 93.2
Market Refusal % 3.21 4.03 0.82
89.2
T1 Weight per shipment Ton/trip 29.4 28.7 -0.7
84.1 T2 Capacity Occupation Hl/trip 68.63 65.95 -2.68
T1 Warehouse Labor
Hl/H-H 11.39 10.49 -0.90
Productivity
T2 Transport Labor
Hl/H-H 2.06 1.99 -0.07
Productivity
Jan Feb Mar Apr May Jun Jul
CV BU T1 Inventory days Coverage Days 6.3 5.9 -0.4

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ATE Wet- Depot Tier 1
T1 Regional Manager

Gerente
APT+ALM

Practicante

Jefe APT Jefe APT+

Jefe ALM
ALM-SM

Pariachi warehouse
Ingeniero Supervisor Supervisor Supervisor
Mantenimiento APT ALM APT+ ALM-
SM

Controller Asistente Asistente

SP APT APT

Operario Operario Operario

Operario Operario Operario
Mantenimiento SP APT + ALM-
APT APT ALM
SM
ATE Dry- Depot Tier 2

T2 Manager

Regional T2
Coordinator

01 01 02
01
RTM RTM Back Ofice T2
Supervisor Supervisor Supervisor Supervisor
Traditional KKAA
04
17 T2
Back DC APT
Assistant
Office
Assistant 06
Insourced 28
Delivery
Contractors
Outsourced 308

302
• Drivers
• Helpers
Ate DC
Executive Summary – Transportation Capacity / Sales & Covered Area
Fleet: 93 Trucks
Delivery Trucks (T2)

Freightliner M2 106 Freightliner M2 106 Mitsubishi Mitsubishi

(1008 cajas / 15.5 TON) (672 cajas / 10.4 TON) (360 cajas / 5.5 TON) (240 cajas / 3.7 TON)

30 CAMIONES 49 CAMIONES 11 CAMIONES 03 CAMIONES

San Mateo
Sales (Last 12 Months): Puente Piedra 92 KM
37 KM 3.5 horas
1´945,000 Hls per year 2.5 horas
80% Beers, 20% NAB’s Cajamarquilla
18 KM
75 SKU’s 1.5 horas

Sales per Channel:

37% Minorists
24% Cash & Carry
20% Supermarkets
CD
16% Wholesalers ATE
Cieneguilla
30 KM
3% High End 2.0 horas

17.100 POCs
313 SMK + Cash & Carry
1,400 – 1,700 Orders per Day San Juan de
Miraflores
KKAA (1,384)
18 KM Lurín (KA)
Base Fleet: 93 Trucks 1.5 horas 32 KM LIMA TRADICIONAL
1.5 horas (15,795)

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Ate DC
Service Level
KPIs
VDOT - DC Ate Market Refusals - DC Ate
100 8
96.17
97 7
94 6
91 5
91.68
88 4
2.88
85 3
82 2 2.50
79 1
76 0
Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul
CV BU CV BU

CDP - DC Ate
VDOT:
40
Market Refusals:
35
CDP:
30
25.31
25
19.72
20

15
Jan Feb Mar Apr May Jun Jul
CV BU

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Ate DC
Eficiency
KPIs
Capacity Ocupation - DC Ate TLP - DC Ate
85.00 2.60

75.00 72.43
2.20 2.09
65.00
1.80
62.44
55.00 1.75

1.40
45.00

35.00 1.00
Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul
CV BU CV BU

Capacity Ocupation:

Transport Labor Productivity (TLP):

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Ate DC
Executive Summary
Special Projects
Implementation Plan
Implementation of the DPO program: Scope 2017
Pillars 100% DPO Management Pillar Safety Pillar
Blocks (83)
Focus
49% 49%
41% 40% 64% 64%
• 5S 33% 49% 54% 59%
Management 11 • SDCA
43%
31%
Blocks • TS&C
14%
3%

22 • 8 focus blocks CV Sep Oct Nov Dec Ene BGT

Safety CV Sep Oct Nov Dec Ene BGT
Blocks • 16 fundamental blocks
Planning Pillar Delivery Pillar
• Routines with Sales, 44% 44% 44% 40%
41% 40%
Planning 12 32% 36% 31%
Routing & Finance 28% 25%
Blocks 23% 20%
• Champions routine 14%
Safety

12 • Quality
Warehouse • Productivty CV Sep Oct Nov Dec Ene BGT CV Sep Oct Nov Dec Ene BGT
Blocks
Warehouse Pillar Fleet Pillar
40% 40% 40%
10 • Service level 38%
39%
43% 44% 44% 44%
Delivery • Productivity 35%
40%
Blocks 36% 36%
26%

• Availability
Fleet 9 • Cost, safety & productivity
Blocks improvements CV Sep Oct Nov Dec Ene BGT CV Sep Oct Nov Dec Ene BGT
People Pillar
• Culture 43% 43% 40%
People 7
• Skills management 28% 30%
Block
16%
6%

CV Sep Oct Nov Dec Ene BGT

Key Insights
• People are our main strength so we have formed an excellent team that supports continuous improvement with Six Sigma Program.
This team is conformed by Yellow Belts and Green Belts as follows:
• Green Belt: 3 leaders + 3 supervisors trained
• Yellow Belt: 6 Supervisors + 16 Assistants trained
• White Belts: 3 Supervisors Back office and 6 assistants on going
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Ate DC
Problem Solving Program: Six Sigma
Belts Recognition
Certified 2017 % Belts of Total Monthly Competition:
Program Employees
employees (ongoing) DMAIC - SIX SIGMA 2017
Green Belt 6 10%
Projects:
Yellow Belt 22 16 19% “ Reduce downtime cause by Logistic in
71% packaging line”
White Belt 3 6
Total 31 16 “ Reduce Total Cycle truck and bottle
necks on site”
Green Belt Yellow Belt
Certifiers: White Belt

Improvement Projects 2017

Projects focused on Consumer Complaints
• Beer
• CSD
17% 8%
Quality
17% Efficiency
Water

58% Energy

• Extract Loss
• Preform Losses
• Consumptions

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Meaningful Jobs

ACTION STATUS DETAIL

Incorporation of recognition programs: Embassador ABI (based

Monthly Multilevel Meetings Ok
in the 10 principles) & Safety Recognition

Leaders and employees shared accomplishments and goals in

Meaningfull Jobs workshops Ok
commun

Ensure the participation of the team and highlight the

Intensive DPO Trainings On going
importance and relevance of DPO as technical knowledge

3 Warehouse Assistants promoted to Huarochiri warehouse

Prioritization of internal recruitment. Ok
supervisor and Huarochiri Lead warehouse.

Stage 1: Wet roofs and walls. Improving employee conditions

Repairs of housing conditions
On going
(Huarochirí)

Ok Daily meeting in each shift shift between leaders and

TOR Routine
employees.

Moving offices to central warehouse On going Improve horizontal communication, and a better interation in
operation warehouse operation

One on One ok Leaders feed back and empower employees on daily activities.

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