Value-based management in direct sales channels,

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H e in e k e n International

Bralima S.A.R.L.

Kinshasa, La République Démocratique du Congo

Value-based management in direct sales channels,

achieving operational excellence with performance-based pay

APPENDICES:

APPENDIX I HEINEKEN DEMOCRATIC REPUBLIC OF CONGO APPENDIX II DISTRIBUTION CONCEPT HEINEKEN CANARIAS APPENDIX III THE DEMOCRATIC REPUBLIC OF CONGO

APPENDIX IV DISCOUNTS DISTRIBUTORS, DIRECT SALES CHANNEL BRALIMA AND BRACONGO, FEBRUARI 2004

APPENDIX V PROCEDURE SRD

APPENDIX VI INSTRUCTIONS DRIVERS

APPENDIX VII HEINEKEN TO OFFER ANTIRETROVIRAL DRUG COVERAGE TO AFRICAN WORKFORCE

APPENDIX VIII INFOSHEET DRIVERS DIRECT SALES CHANNEL APPENDIX IX SHEET ‘SUIVRE LA PROFITABILITE’

APPENDIX X INSTRUCTIONS CHEF DU ROUTE

APPENDIX XI ALTERNATIVE ROADMAP DIRECT SALES DRIVERS

APPENDIX XII VALUE-BASED MANAGEMENT ACCORDING TO RAPPAPORT

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APPENDICES

VALUE-BASED MANAGEMENT IN DIRECT SALES CHANNELS Achieving operational excellence with performance based pay

APPENDIX I HEINEKEN DEMOCRATIC REPUBLIC OF CONGO Heineken - The world’s most international brewer

Heineken N.V. has its roots in Amsterdam, where in 1864, Gerard Adriaan Heineken acquired the Hooiberg (Haystack) brewery at the age of 22. This brewery itself dated from 1592 and was founded by the widow Weijntgen Elberts.

Gerard Adriaan Heineken soon realised the great importance of the changeover in Germany from top-fermenting to bottom-fermenting beer. He commissioned Dr Elion, a pupil of Louis Pasteur, to isolate the Heineken A-yeast, which he succeeded in doing in 1886. Three years later, the brewery received the prestigious ‘grand prix Paris’ in the world’s fair. To this day the A-yeast is used in the Heineken brewing process the world over.

The worldwide success of the Heineken brand has been built on three key principles: product quality, understanding the markets and relevant communication. Alfred Henry Heineken, grandson of the founder, deserves much of the credit for the success, because he understood how marketing, and specifically advertising, could be used to build brand awareness. It was his idea to introduce the familiar green bottle and the smiling ‘e’ in the logo. Both elements play an important part in communicating the attractive nature of the Heineken brand.

The Heineken Group has only a very limited presence in the low-priced segment. In parts of Europe the Group has beverage wholesalers, through which in addition to beer a supporting range of soft drinks and spirits are supplied to the on-premise segment.

Heineken was the first brewer to export to the USA after the lifting of Prohibition in April 1933 and has built up a strong position in the US beer market; a market worth $ 175 billion annually.

The merger with ‘Amstel’ and ‘Vrumona’ in 1968, the take over of ‘De Ridder’ and ‘Brand’ in the eighties and of ‘Van Munching & Co’ in 1991, strengthened its market position considerably.

Thanks to its strategy and its response to changes in the world beer market and thanks to its early start on the road towards internationalisation, today Heineken is the most international brewer in the world, operating in over 170 countries and employing 40,000 people. In 2002, Heineken brewed a total of 105 million hectolitres of beer at over 110 breweries in more than 60 countries.

In 2003 Heineken acquired the Austrian-based brewery group BBAG. The integration of Heineken and BBAG operations in Central and Eastern Europe is believed to create an excellent platform for further growth.

Heineken can be contacted at Tweede Weteringplantsoen 21 1017 ZD Amsterdam

Postal address:

PO BOX 28

1000 AA Amsterdam The Netherlands

Telephone: +31 (0)20 523 92 39

Fax: +31 (0)20 626 35 03

Email: info@heineken.com

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APPENDIX I HEINEKEN DEMOCRATIC REPUBLIC OF CONGO

For many decades Heineken has been present in Africa. The most important African brands of the Heineken Group are Primus, Gulder and Star. Heineken is the number two-brewery group in this continent.

Founded in 1923 in Kinshasa as ‘Brasseries de Leopoldville’, Bralima is one of Africa's oldest breweries. Until then, beer was imported from The Netherlands and Germany. The alternative was the malicious locally produced alcoholic beverage, in Lingala referred to as ‘Lokoto’

(wicked). Originally the brewery was not allowed to produce over 10 % of the imported volume, to serve the 27.000 thousand inhabitants of Kinshasa. Loosened up legislation and the outbreak of World War II, which lead to an economic boom in the Belgium Congo, allowed the brewery to expand its volume drastically. The company nowadays counts 6 subsidiaries; besides Kinshasa, Bukavu was inaugurated in 1950, Kisangani and Boma soon followed (1957/1958), and Mbandaka was inaugurated in 1972. With the take over of soft drinks producer CIB in 1992 also the Lubumbashi plant was acquired.

The Administrateur Délégué, or general manager directs several heads of departments, as can be seen in figure I A. Only the bottom layer of hierarchic positions is not located in the main subsidiary Kinshasa.

Figure I A, Organisation sheet Bralima S.A.R.L.

Bralima produces a wide variety of beers (Primus, Mutzig, Turbo King, Guinness) and other beverages (Coca-Cola, Fanta-Anana, Fanta-Orange, Fanta-Grenadine, Maltina, Schweppes Tonic, Schweppes Soda, Sprite, Vital’O Grenadine and Vital’O Eau de Table).

The expertise of technical, financial, commercial and medical employees is updated frequently due to intensive training programs in The Netherlands, or by training on the job in Kinshasa. In this case, experts from all over the world can be flown in.

Besides its production facilities, Bralima also has a bottling plant of its own in the capital.

Recently, a program of modernisation was begun and the plants in Kinshasa and Boma were re- equipped with new, state-of-the-art machines. The other facilities will follow soon.

Bralima can be contacted at Avenue du Drapeau 1

B.P. 7246 Kinshasa - Gombe Democratic Republic of Congo

Administrateur Délégué

Secrétaire A.D. Audit Interne

Direction Médicale Communication

Dir. Prod&Technique Dir. Marketing&Com. Dir. Financière Supply chain man. Dir. Res. Humaines

Dir. Siège Boma Dir. Siège Bukavu Dir. Siège Kinsangani Dir. Siège Mbandaka Dir. Siège L’shi

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APPENDIX II DISTRIBUTION CONCEPT HEINEKEN CANARIAS Date: June 13, 2003

Publisher: Heineken N.V.

A higher margin, a source of growth and a less strong dependency on large wholesale accounts. Those were the most important motives for Heineken Canarias to refine its key distributor programme last year.

Possibilities of introducing the concept in more markets are being looked into.

Autonomos

More than eighty per cent of all Heineken sold in the Spanish Canaries is supplied to big customers like supermarkets, wholesalers and cash & carry outlets. Many on-premise establishments in the Canary Islands in turn buy Heineken from these big customers. In the final analysis 60% of the Heineken volume is sold to consumers via the on-premise channel. One third of this volume is sold directly to the on-premise sector by Heineken Canarias itself. Heineken Canarias therefore wanted to gain more control over this important sales segment. The local head office also found that the key distributor on Tenerife was not performing optimally and that a part of the on-premise market was not being actively approached. One partial solution: split up the market into regions and conclude a contract for each region with an independent operator who uses one truck (provided with branding by Heineken) to visit the customers and who works closely together with the sales reps of Heineken Canarias. These independents, or autonomos in Spanish, use a door-to-door hawking system to generate sales and also to acquire new customers within their own region.

High motivation

Every year the contract with the autonomos is reassessed. On the basis of clear performance indicators a decision is taken on whether or not the independent operator is still performing satisfactorily. The new concept has been a success: since its inception in the summer of 2002 sales increased by 20% in six months as compared to the corresponding period of 2001. The intention is that the concept will also be introduced in Gran Canaria.

At the same time studies are taking place within Heineken Export to find out whether it is possible for this concept, in which distribution forms an integral part of the sales strategy, to be implemented in other markets. Within Heineken's strategy, control over distribution is an important precondition for achieving sustainable growth, but only in a number of instances is acquisition of a controlling interest opportune.

According to Heineken Export, the new structure on the Canary Islands has shown that clear-cut contracts with smaller entrepreneurs lead to more efficient cooperation.

Due to the high motivation of the autonomos it proved possible to control and raise the performance of the distribution network. Especially in stable beer markets, like the Canary Islands, with dominant competitive brands, this increased control has been very rewarding, leading to higher sales and higher market share.

Source: http://www.heinekeninternational.com/press/articles/2003_06_13new_distribution_concept.jsp, September 29, 2003

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APPENDIX III THE DEMOCRATIC REPUBLIC OF CONGO Described by some as Africa's first World War, the conflict in the

DRC (formerly known as Zaire) has involved seven nations. There have been a number of complex reasons, including conflicts over resources as well as various political agendas. This has been fuelled and supported by various national and international corporations and other regimes that have an interest in the outcome of the conflict. 2.5 million deaths since the outbreak of the fighting in August 1998.

The Democratic Republic of the Congo includes the greater part of the Congo River Basin, which covers an area of almost 1 million square kilometres (400,000 sq. mi.). The country's only outlet to the Atlantic Ocean is a narrow strip of land on the north bank of the Congo River. The vast, low-lying central area is a basin-shaped plateau sloping toward the west and covered by tropical rainforest.

This area is surrounded by mountainous terraces in the west, plateaus merging into savannas in the south and southwest, and dense grasslands extending beyond the Congo River in the north. High mountains are found in the extreme eastern region. The climate is hot and humid in the river basin and cool and dry in the southern highlands. During the wet season, thunderstorms often are violent but seldom last more than a few hours.

The population of DROC was estimated at 56.6 million in 2003. As many as 250 ethnic groups have been distinguished and named. The most numerous people are the Kongo, Luba, and Mongo. Although 700 local languages and dialects are spoken, the linguistic variety is bridged both by the use of French and the intermediary languages Kikongo, Tshiluba, Swahili, and Lingala. About 80% of the Congolese population are Christian, predominantly Roman Catholic. Most of the non- Christians adhere to either traditional religions or syncretic sects.

Traditional religions embody such concepts as monotheism, animism, vitalism, spirit and ancestor worship, witchcraft, and sorcery and vary widely among ethnic groups; none is formalized. The syncretic sects often merge Christianity with traditional beliefs and rituals.

Before independence, education was largely in the hands of religious groups. The primary school system was well developed at independence; however, the secondary school system was limited, and higher education was almost nonexistent in most regions of the country.

The principal objective of this system was to train low-level administrators and clerks. Since independence, efforts have been made to increase access to education, and secondary and higher education have been made available to many more Congolese. Despite the deterioration of the state-run educational system in recent years, about

80% of the males and 65% of females, ages 6-11, were enrolled in a mixture of state- and church-run primary schools in 1996. At higher levels of education, males greatly outnumber females. The elite continues to send their children abroad to be educated, primarily in Western Europe.

The area known as the Democratic Republic of the Congo was populated as early as 10,000 years ago and settled in the 7th and 8th centuries A.D. by Bantus from present-day Nigeria. Discovered in 1482 by Portuguese navigator Diego Cao and later explored by English journalist Henry Morton Stanley, the area was officially colonized in 1885 as a personal possession of Belgian King Leopold II as the Congo Free State. In 1907, administration shifted to the Belgian Government, which renamed the country the Belgian Congo. Following a series of riots and unrest, the Belgian Congo was granted its independence on June 30, 1960. Parliamentary elections in 1960 produced Patrice Lumumba as prime minister and Joseph Kasavubu as president of the renamed Democratic Republic of the Congo.

Within the first year of independence, several events destabilized the country: the army mutinied; the

governor of Katanga province attempted secession; a UN peacekeeping force was called in to restore order;

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APPENDIX III THE DEMOCRATIC REPUBLIC OF CONGO

Prime Minister Lumumba died under mysterious circumstances; and Col. Joseph Mobutu (later Mobutu Sese Seko) took over the government and ceded it again to President Kasavubu.

Unrest and rebellion plagued the government until 1965, when Lieutenant General Mobutu, by then commander in chief of the national army, again seized control of the country and declared himself president for 5 years. Mobutu quickly centralized power into his own hands and was elected unopposed as president in 1970. Embarking on a campaign of cultural awareness, Mobutu renamed the country the Republic of Zaire and required citizens to adopt African names. Relative peace and stability prevailed until 1977 and 1978 when Katangan rebels, staged in Angola, launched a series of invasions into the Katanga region. The rebels were driven out with the aid of Belgian paratroopers.

During the 1980s, Mobutu continued to enforce his one-party system of rule. Although Mobutu successfully maintained control during this period, opposition parties, most notably the Union pour la Democratie et le Progres Social (UDPS), were active. Mobutu's attempts to quell these groups drew significant international criticism.

As the Cold War came to a close, internal and external pressures on Mobutu increased. In late 1989 and early 1990, Mobutu was weakened by a series of domestic protests, by heightened international criticism of his regime's human rights practices, and by a faltering economy. In May 1990 Mobutu agreed to the principle of a multi-party system with elections and a constitution. As details of a reform package were delayed, soldiers in September 1991 began looting Kinshasa to protest their unpaid wages. Two thousand French and Belgian troops, some of whom were flown in on U.S. Air Force planes, arrived to evacuate the 20,000 endangered foreign nationals in Kinshasa.

Since 1994 the Democratic Republic of the Congo has been rent by ethnic strife and civil war, ouched off by a massive inflow of refugees from the fighting in Rwanda and Burundi. The government of former president MOBUTU Sese Seko was toppled by a rebellion led by Laurent KABILA in May 1997; his regime was subsequently challenged by a Rwanda- and Uganda-backed rebellion in August 1998. Troops from Zimbabwe, Angola, Namibia, Chad, and Sudan intervened to support the Kinshasa regime. A cease- fire was signed on 10 July 1999, but sporadic fighting continued. KABILA was assassinated in January 2001 and his son Joseph KABILA was named head of state. The new president quickly began overtures to end the war.

In July 2001 the Democratic Republic of Congo is at a turning point. Efforts are underway to provide peace, democracy and sound economic management. Their success is not assured, but they offer the possibility of a dramatic improvement in the Congolese investment climate. Should they fail, the DRC will remain a very difficult place to do business.

During its first four months, Joseph Kabila's government adopted a floating exchange rate and foreswore deficit spending. The government is engaged in a structural reform program adopted in consultation with the International Monetary Fund (IMF). Success in achieving program targets will allow the country access to World Bank and IMF credits. The program includes a commitment to institutional reform that would create a stable environment for business with predictable and fair regulatory controls.

Sources:¹

http://usembassy.state.gov/kinshasa/wwwhccg1.html, December 10, 2003 http://www.risq.org/article108.html, March 22, 2004

1 Additional references:

1. Bulu Bobina, B. 1984. Le problème des terres cultivables en milieu rural. Cas de la Zone de Kasangulu. Zaïre-Afrique . 2. Honyoux, J., N. Kinavwuidi, and O. Okita. 1986. Budgets des ménages, Kinshasa, 1986. Département du Plan-BEAU, Kinshasa.

3. INS/UNDP (Institut National de la Statistique and United Nations Development Programme). 1991. Zaire: Un aperçu démographique. Résultats du recensement scientifique de la population en 1984. Zaire-Afrique 255: 227-261.

4. Mkwala-ma, M. ye B. 1991. The trade in food crops, manufactured goods and mineral products in the frontier zone of Luozi, Lower-Zaire. In: J. MacGaffey, ed., The Real Economy of Zaire. James Currey, London, pp. 97-123.

5. Pain, M. 1984. Kinshasa, la ville et la cité. Editions de l'ORSTOM, Collection Mémoires 105, Paris.

6. Piermay, J.-L. 1993a. Citadins et quête du sol dans les villes de l'Afrique centrale. L'Harmattan, Paris.

7. Republic of Zaire. 1984. Combien sommes-nous? Recensement scientifique de la Population (I juillet 1984), résultats provisoires. Institut National de la Statistique, Secrétariat National du Recensement, Kinshasa.

8. Shoepf, B. G. 1991. Political economy, sex and cultural logics: A view from Zaire. African Urban Quarterly 6(1/2): 94-106.

9. Tillens, E. 1991. Nourrir Kinshasa. Une analyse du système d'approvisionnement en produits vivriers. Katholieke Universiteit Leuven, Centrum voor Land-bouweconomisch Onderzoek Ontwikkelingslanden, Leuven.

10. Willame, J.-C. 1986. Zaire: L'épopé d'Inga. Chronique d'une prédation industrielle. L'Harmattan, Villes et Entreprises, Paris.

11. Young, C. 1965. The Problems of the Congo: Decolonization and Independence. Princeton University Press, Princeton, N.J.

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APPENDIX III THE DEMOCRATIC REPUBLIC OF CONGO Urban neighbourhoods in Kinshasa, Source: based on BEAU,

Project de développement urbain, Kinshasa, Polycop, 1985

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APPENDICES

APPENDIX IV DISCOUNTS DISTRIBUTORS, DIRECT SALES CHANNEL

BRALIMA AND BRACONGO, FEBRUARI 2004

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APPENDIX V PROCEDURE SRD

Procedure SRD Section 1.

Introduction.

1.1 General principles.

o Agents of BRALIMA open the clients’ accounts.

o All the sales are paid in cash on delivery and the principal condition for deliveries is return bottles for full crates.

o Each SRD account is limited by a maximum of produced credits and return bottles corresponding to the quantities of its weekly program.

o The order SRD is published the day of the loading or the evening before departure.

o The ‘order list’ remains the background document for the loading of the vehicle and the exit check.

o The salesman (driver) is completely responsible for his cargo.

o The return bottles and sales revenues are counted the same day as the products have left the brewery.

o Missing and broken return bottles are managed according to the procedure ‘casses et manquants SRD’.

o Deficits are immediately communicated to the DMC (commercial director).

o If the deficit exceeds $ 20, - the salesman does not get into the truck the next day; a substitute is appointed to him by the sales manager. The DRH (director human resources) proclaims immediately provisions.

o The same provisions are proclaimed if the monthly deficit exceeds $ 100, -.

o The deficits are recovered by reserves on the driver’s pay.

1.2 Responsibilities.

1.2.1 Administration Commerciale (commercial administration)/Bureau Orders o To create the order SRD.

o To remain in contact with the drivers. Establish contact at least once before the driver returns for a refill.

o To computerise the receipts and deposit slips returned by the salesmen.

1.2.2 Finances (finance department)/Trésorerie (treasury)/Caisse (pay counter) o To develop the receipts for SRD clients.

o Recount the money of the drivers and computerise the receipts.

o Valorise deficits and communicate these to the DMC.

1.2.3 DMC (sales department)

o To assign the salesmen to a vehicles and a route.

1.2.4 SCM (supply chain management) o To publish the order list.

o To computerise incoming and outgoing products.

1.2.5 Informatique

o To print the invoices of customers.

1.2.6 Salesmen

o To sell drinks to SRD clients, write out receipts, maintain good customer relations and to

return the daily revenues and collected return bottles to the brewery.

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APPENDICES

APPENDIX V PROCEDURE SRD Section 2.

Procedure SRD.

2.1 Weekly SRD program of sales

o After the meeting of the sales managers, the sales manager publishes the weekly SRD program of sales and sends it to the Office Orders after having signed it.

2.2 Import of the order lists in the system

o Based on the weekly SRD program of sales, an encoder of Bureau Orders computerises and prints the order lists the day of the loading or the evening before departure.

o The encoder stores hands over the order lists to the Chef du Shift (floor manager).

2.3 Loading vehicles SRD

o The Chef du Shift assigns the order to an available vehicle, so the lift truck drivers can start the loading.

o The lift truck driver returns the order lists to the Chef du Shift when he is finished loading.

o Based on the order lists, the Chef du Shift and the salesmen check the physical loading of each vehicle, after which the order lists are send to the encoder of Bureau Orders who declares them “good for exit”.

2.4 Exit vehicles

o An exit check is performed by security company ASCO.

2.5 Customer sales

o According to the feuille du route (road map), the salesman visits the SRD clients, he sells his products and manually fills in a receipt.

o The salesman receives the money, he recounts it and he simultaneously lets his convoyeurs (deloaders) check the return bottles, discharge the products and load the return bottles on the vehicle.

o The salesman hands over the receipt to the SRD client.

o After finishing his route (or if a lack of stock occurs), the salesman returns to Bralima.

2.6 Return of the salesmen to the brewery

o The lift truck drivers discharge the vehicle in the presence of the salesman and the products are sent to the warehouse; the vehicle is driven to the car park where it can be reloaded.

o ASCO recounts the returned products in the presence of the salesman and computerises the information in ISHA.

o Deficits are noted on the order list by an ASCO agent, after which it is signed by the salesman.

o The salesman delivers his sales revenues to the bank and receives from the banker the deposit slip in two copies.

o The receipts and deposit slips are computerised by Administration Commerciale.

Based on : Simisi Wa Simoun’hi, M.A., Rapport de stage effectue a la Bralima – Kinshasa, du 1

^er

Janvier

au 31 Mars 2003, République Démocratique du Congo, Ministère de l’éducation nationale, Institut

Supérieur de Commerce (I.S.C.) Kinshasa - Gombe

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APPENDIX VII HEINEKEN TO OFFER ANTIRETROVIRAL DRUG COVERAGE TO AFRICAN WORKFORCE

Heineken to offer antiretroviral drug coverage to African workforce

Heineken brewery is at the “leading edge of an effort by multinational [companies] ... to forestall a wipe-out of Africa’s labour force,” by guaranteeing antiretroviral drug coverage to its African workforce of 6,000 and their “immediate dependents,” Forbes reports.

Over the last year, Heineken has offered antiretroviral drugs to its employees in Rwanda and Burundi, and is beginning the programme in Nigeria, Ghana, the Democratic Republic of the Congo and the Republic of the Congo. Countries with “rickety hospitals and laboratories,”

such as Sierra Leone and Chad, or countries where Heineken has a minority stake in breweries, such as Angola and Morocco, will be last, Forbes reports.

Heineken has hired not-for-profit PharmAccess, which trains local doctors to administer the antiretroviral drugs, to run the $2 million-a-year programme. In one brewery that employs 600 workers, Heineken was losing an average of 10 workers or dependents a year to AIDS-related deaths, but last year it lost only one worker, who refused the drug treatment. “If we don’t do anything and say, ‘Okay, let nature take its toll,’ then within seven years 20% of your senior management (in Africa) is gone,” Hans van Mameren, head of Heineken’s AIDS programme, said. However, the programme “has been a struggle” because only 30% of the workforce in Rwanda has taken an HIV/AIDS test, Forbes reports. Furthermore, Heineken’s medical staff

“has to make up rules as it goes along” because the eight-page company AIDS manual does not specify exactly what constitutes a dependent; in some of the countries it is legal to have up to four wives, according to Forbes.

Heineken must also deal with the Nigerian government, which charges a 20% import duty on all medications, and airlines that do not want to carry HIV-infected blood from countries without good laboratories for testing. Other problems include ensuring that employees do not resell the drugs and ensuring that employees pay a “token contribution” toward treatment in order to encourage HIV-positive patients to maintain their drug regimens, Forbes reports.

“We can’t give drugs away for free, or we become an NGO,” van Mameren said (Sansoni, Forbes, 2/3).

Source: http://www.forbes.com/forb es/2003/0203/064.html, October 1, 2003

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APPENDIX VII HEINEKEN TO OFFER ANTIRETROVIRAL DRUG COVERAGE TO AFRICAN WORKFORCE

Democratic Republic of Congo

DEMOCRATIC REPUBLIC OF CONGO

Assessment of the Epidemiological Situation & Demographics HIV/AIDS Impact on the Macroeconomic Level

• A recent study by the Harvard Institute of International Development estimated that the total cost to Congo by 1995 due to AIDS-associated deaths was US$350 million, which was about 8% of GDP.

Source: Cited in Ojo, K and M Delaney. (1997) “Economic and Demographic Consequences of AIDS in Namibia: Rapid Assessment of the Costs.” International Journal of Health Planning and Management; 12: 315- 326, 1997.

HIV/AIDS Impact on the Private Sector

Estimated percentage of adults living with HIV/AIDS, end of 2001

These estimates include all people with HIV infection, whether or not they have developed symptoms of AIDS, alive at the end of 2001:

4.9%

Estimated number of deaths due to AIDS

Estimated number of adults and children who died of AIDS during 2001:

120,000 Estimated number of orphans

Estimated number of children who have lost their mother or father or both parents to AIDS and who were alive and under age 15 at the end of 2001:

930,000

• From 1985 to 1999, the median HIV prevalence rate among antenatal clinic (ANC) attendees in Kinshasa, the major urban area, fluctuated between 3% and 7%. In 1999, 5.4% of antenatal clinics attendees tested were HIV positive.

• Sentinel surveillance outside of Kinshasa is infrequent. Studies conducted showed that HIV prevalence among antenatal women tested was between 3% and 4% between 1988 and 1993.

• In 1997, HIV testing was conducted at 14 sites outside Kinshasha; about 4% of ANC attendees tested HIV positive with prevalence ranging from 0.4% to 6.3%. In Lubumbashi, HIV prevalence rose from 2.7% in 1989 to 8.5% in 1999.

Source: UNAIDS/WHO epidemiological fact sheet – Malawi

• According to the researcher Radhika Sarin of the Worldwatch Institute, more than 40% of soldiers in the DRC are infected with HIV.

• A report entitled "HIV and Conflict: A Double Emergency", issued at the international AIDS conference in Barcelona, Spain, said conflict situations in Congo Brazza and the Democratic Republic of Congo were fuelling the rapid spread of HIV as a result of the exploitation of women forced to resort to sexual bartering due to food scarcity; people being forced from their homes; low levels of HIV awareness; an absence of sexual and reproductive health services; and an increased likelihood of use of unscreened blood.

• According to an inquiry carried out by "Progrès des Nations" magazine, UNICEF publication, teachers who have died of AIDS in the Democratic Republic of the Congo (DRC) in the past two years have left 27,000 children without instructors.

Source: AIDS Education Global Information System. http://www.aegis.com/news/irin/2002/ir020708.html

• A study of a textile mill in Kinshasa found that the highest rate of HIV prevalence was discovered in the managers, followed by the foremen, with the lowest rates found in the workers. Thus the effect of HIV/AIDS will be felt most strongly in the more highly skilled workers, who are more difficult to replace.

Source: PHNFlash Issue 58, Feb 22, 1995, “The Economic Impact of AIDS,” found at website http://www.worldbank.org/html/extdr/hnp/hddflash/issues/00075.html

• In 1990, large corporations in Congo were required to provide health benefits to their employees and to the families of the employees. A study evaluated the impact of HIV infection on the costs of health care for a large bank in Kinshasa by examining medical records of 90 HIV-positive employees. The evidence indicated that health care utilization increased substantially for these employees over time, and consequently so did health care costs for the company.

Source: Mposo, N, S Bertozzi, M Kamenga, A Doppagne, B Engel, and R Ryder (1990) “Large increase in health care utilization by HIV infected employees at a commercial bank in Kinshasa, Zaire,” Int Conf AIDS; 6(1):172 (abstract no. Th.D.218).

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APPENDIX VII HEINEKEN TO OFFER ANTIRETROVIRAL DRUG COVERAGE TO AFRICAN WORKFORCE

• One of the first African countries to recognize HIV, the DRC registered cases of HIV among hospital patients as early as 1983. The DRC was also the first African country to actually design and implement an HIV/AIDS program. However, the economic crisis, internal conflict, and related population displacements have limited the effectiveness of programs.

• The National AIDS Control Program (NACP) was established in the early 1990s with considerable support from the World Bank. The NACP’s main responsibilities include planning, coordinating, and developing short- and medium-term plans and a national strategic plan. The NACP consists of a multisectoral committee (Comité National de Lutte contre le SIDA - CNLS), chaired by the Minister of Health. In addition, a central office (Bureau Central de Coordination du Programme National de Lutte Contre le SIDA/MST - BCC/SIDA), acts as the central unit for planning, coordination, and monitoring and evaluation of all HIV/AIDS/STI activities.

• According to the UN Population Fund (UNFPA), in December 2002 the military and police in the Democratic Republic of the Congo announced that they were planning to launch a countrywide HIV/AIDS awareness campaign. In 2001, the DRC adopted a national strategic plan for an expanded and integrated response to HIV/AIDS. The plan defines priorities for intervention, highlighting the importance of access to antiretroviral medicines and essential drugs for the treatment of opportunistic infections. The DRC is committed to cooperation with its neighbors under a regional collective response to combat the growing HIV/AIDS pandemic in Africa.

Source: United States Agency for International Development (USAID) AIDS in DRC (2002)

• Bralima, the brewery company in the DRC owned by Heineken, has developed a program against AIDS for its workforce as part of a larger cooperation between Heineken and the German Technical Cooperation (GTZ). The program includes sensitization, anti-stigmatization and treatment.

• In the telecoms sector, Vodacom is sponsoring a publicity campaign for AIDS prevention.

• The German Technical Cooperation (GTZ) is working with the University of North Carolina (USA) to implement awareness and prevention programs in the military.

• Population Services International (PSI) collaborates with the Ministry of Health, the National AIDS, Family Planning and Malaria agencies, and many international and local NGOs involved with HIV/AIDS, family planning and reproductive health and malaria prevention for communication and social marketing activities in all major urban centers in the country. Those programs are mainly targeting to high-risk groups, such as commercial sex workers, the military and the police, long-haul truckers, miners, adolescents, dockworkers, and fishermen.

• The United States Agency for International Development in the Democratic Republic of Congo (USAID/DRC) focuses on enhancing treatment and community support activities, increasing political and social commitment to HIV/AIDS, and reducing the stigma of persons living with the disease.

• More recently (August 2002) the World Bank's International Development Association (IDA) arm has approved a $44m grant to the DRC for projects to prevent and treat AIDS, as well as other diseases such as malaria and tuberculosis.

*For details and contact information, please see List of Potential Direct Partners that follows Source: The World Bank DRC office

LINKS AND CONTACTS

1. Population Services International – Association de Santé Familiale, Building Shell, No. 12 Blvd. 30 Juin, Kinshasa 1, Phone and Fax: (243) 12-20544 E-mail: 103361.3624@compuserve.com

2. USAID/DRC, Contact person: Anthony Gambino, Mission Director, American Embassy Kinshasa, Unit 31550, APO EE 09828. Tel: (243) 88-03142 E-mail: agambino@usaid.gov, Web site: www.usaid.gov/cg

3. Association Femmes Plus: Aline Okongo Dishashi, Contact Person, 112 Lokolenge Commune de Ngiri-Ngiri, Kinshasa 12605. Fax: (243) 884-3675 4. L. Kitenge, Bralima/Heineken, Avenue du Flambeau 912, Gombe – Kinshasa Email C._Kitenge@Heineken.nl

List Of Potential Direct Partners

IFC Against AIDS Sabine Durier, Program Coordinator Tel: +1-202-473-4176, Email: sdurier@ifc.org Email: ifcagainstaids@ifc.org Vlasios Tigkarakis, Program Analyst Tel: +1-202-473-1394, Email: vtigkarakis@ifc.org Fax: +1-202-974-4343 Athena Azarcon, Program Assistant Tel: +1-202-473-6049, Email: aazarcon@ifc.org

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APPENDICES

APPENDIX VIII INFOSHEET DRIVERS DIRECT SALES CHANNEL

Fiche pour les CHAUFFEURS-VENDEURS SRD Bralima

Bonnes Ventes !

Qui est responsable pour la distribution, les dépôt relais et les grossistes ?

Les Chefs des Secteurs Distribution:

Nord:

Barumbu / Gombe / Kinshasa / Kitambo / Lingwala / Ngaliema /

Kasangulu

Centre:

Bandalungwa / Bumbu / Kalamu / Kasa-Vubu / Lemba / Makala / Mont-Ngafula / Ngaba / Ngiri-Ngiri

/ Selembau

Sud:

Kimbanseke / Kisneso / Limete / Maluku / Masina / Matete /

Ndjili / Nsele

Kabeya Weka Koffi

Tel. 0815070088 Tel. 0816893866 Tel. 98530569

Quand quelqu'un veut ouvrir un bar et pour questions par le promo, qui on doit appelé ?

Secteur 1 Secteur 2 Secteur 3 Secteur 4 Secteur 5 Secteur 6 Ndjili /

Kimbanseke / Kingansani / Nsele / Maluku

Limete / Matete / Kisneso /

Masina

Lemba / Ngaba / Mombele / Makala / Mont

Ngafula

Kalamu / Kasa- Vubu / Ngiri- Ngiri / Bumbu /

Selembau

Barumbu / Kinshasa / Lingwala / Bandal / Gombe

Kitambo / Camp Luka / Ngaliema / Badiading / Cite Maman

Mobutu / Kasangulu

Mongu Kasanza Mudumbi Minga Nsonsa Iyeli

tel. 0816893883 tel. 0816893925 tel. 0816893927 tel. 0816893884 tel. 9942024 tel. 0816893881

Pour les CRH , qui on doit appelé? Au niveau de Distributeurs , qui on doit appelé?

Kazadi Kalombo

tel. 0816893923 tel. 0816893924

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APPENDIX IX SHEET ‘SUIVRE LA PROFITABILITE’

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APPENDICES

APPENDIX IX SHEET ‘SUIVRE LA PROFITABILITE’

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APPENDICES

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APPENDICES

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APPENDICES

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APPENDICES

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APPENDIX XI ALTERNATIVE ROADMAP DIRECT SALES DRIVERS Commune(s) :

TEMPS VENTES EFFECTUEES en cercle manquants!

Observations

No. Client Adresse

H.A. H.D. PR TK MU GU CC FO FG FA SP SWT SWS VG30 VG60 VT60 Malt ...

1 15335 MAMBU NGUETE BAR 6 PAILOTTES FIKIN N°7/50

: :

2 15372 PUNGUSU BAZIKA TERASSE YA BOENZ AV BASANGA 94

: :

3 15373 NZAZI KUNZUETO AV KIPATA N°57 - Q.WELE

: :

4 15390 JEAN IYOKA 9929 Q/SNEL SALONGO

: :

5 15394 MUENGA MUKEDI MUTOTO 49D

: :

6 15398 ^SAMBA KITENI 48 Q3

: :

7 15426 MOPANGA LE CHAMPION RD POINT HUILERIES

: :

8 15438 MWIKA MULENDA 196 CITE SALONGO NORD

: :

9 15448 NANGA TCHETCHE 1201, AV KARONGE Q/MANDRANDELE

: :

10 15455 MPIA LUATA MINI CONGO N°3

: :

11 15485 MUKUWA NDJOFU TRAFIC UNIKIN

: :

12 15540 MAHAMBA JEANNE 2833/40,RUE MFIDI

: :

13 15548 ALBERT KAYEMBE XMENT BANGAMELO-NSEFU

: :

14 15564 ALAIN TSHIBANGU BY-PASS 8427/4 STATION MOBIL

: :

15 15601 PANGU(CARROUSEL) 42, ARWIMI Q/SUPER-LEMBA

: :

16 15712 TANDO ISUKA MARIE 39,KIKUSA LEMBA TERMINUS

: :

17 15715 NZUBA SYLVIE 35, AV. BIMA SUPER LEMBA

: :

18 15335 MAMBU NGUETE BAR 6 PAILOTTES FIKIN N°7/50

: :

19 15372 PUNGUSU BAZIKA TERASSE YA BOENZ AV BASANGA 94

: :

20 15373 NZAZI KUNZUETO AV KIPATA N°57 - Q.WELE

: :

21 15390 JEAN IYOKA 9929 Q/SNEL SALONGO

: :

22 15394 MUENGA MUKEDI MUTOTO 49D

: :

PR TK MU GU CC FO FG FA SP SWT SWS VG30 VG60 VT60 Malt ...

MANQUANTS CHARGER

VENTES EFFECTUES RETOUR PLEIN

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APPENDICES

APPENDIX XII VALUE-BASED MANAGEMENT ACCORDING TO RAPPAPORT

Value-based Management (VBM) is a framework for measuring and managing businesses to create superior long-term value for shareholders that satisfies both the capital and product markets.

²

A McKinsey & Co research reveals that shareholder-oriented economies appear to perform better than other economic systems, and other stakeholders do not suffer at the hands of shareholders.

³

Figure XII A, The shareholders value-network. Source: Rappaport, 1998

Rappaport recognizes the next seven value drivers for the creation of shareholder value:

⁴

1. Value growth duration (planning period)

2. Sales growth

3. Operating profit margin 4. Income tax rate (cash taxes) 5. Working capital investment 6. Fixed capital investment 7. Cost of capital

Only after these value drivers are translated in operational value drivers (debtors term, capacities-utilization, creditors term, cost prices, supplies, etc.) can the enterprise use value to steer.

This research is primarily focussed on the creation of a growth in sales. This is one of the most important value drivers in expanding the operational cash flow.

Companies that successfully use VBM programs share five main characteristics.

⁵

First, nearly all made explicit and public their commitment to shareholder value. Second, through training, they created an environment receptive to the changes the program would engender. Third, they reinforced that training with broad-based incentive systems closely tied to the VBM performance measures, which gave employees a sense of ownership in both the company and the program. Fourth, they were willing to craft major organisational changes to allow all their workers to make those value-creating decisions. Finally, the changes they introduced to the company's systems and processes were broad and inclusive rather than focused narrowly on financial reports and compensation. A VBM program is difficult and expensive. Still, the authors argue, properly applied, it will put your company's profitability firmly on track.

⁶

2 Ameels, A., et Al. Value-based management control processes to create value through integration, a literature review, Vlerick Leuven Gent Management School, 2002

3 Ameels, A., et Al. Value-based management control processes to create value through integration, a literature review, Vlerick Leuven Gent Management School, 2002

4 Rappaport, A., Creating Shareholder Value, 2nd edition ,The Free Press, 1998

5 Haspeslagh, P., Noda, T., Boulos, F., Managing for value, it's not just about the numbers, Harvard Business Review, 2001 6 Haspeslagh, P., Noda, T., Boulos, F., Managing for value, it's not just about the numbers, Harvard Business Review, 2001