ECONOMIC SUSTAI NABI LITY
17
TOWARDS SUSTA INABILITY
2.1 Reporting basis
The information presented in this chapter relates
to 2002 and 2003 and the operating companies and
participating interests included in the consolidated
financial statements.
Heineken N.V. and the operating companies and
participating interests with which it forms a group
are fully included in the consolidated balance sheet
and profit and loss account, with minority interests
in group equity and group profits shown separately.
Proportional consolidation is applied in the case of
participating interests in which Heineken has a
direct interest and exercises a controlling influence
on management decisions together with other share
holders.
2.2 Economic policy and governance
Responsibility for management within the Heineken
group of companies is centralised at Heineken N.V.
Executive Board level. Reporting lines are short: all
corporate directors and managers of the larger
operating companies in the group report directly to
the Executive Board.
Regular meetings are held between the members
of the Executive Board, corporate directors and
operating company managers at which operating
performance and other important topics are dis
cussed. Each year, the operating companies prepare
a three-year operational plan, in which targets are
defined in terms of a series of performance indi
cators, such as EBIT (earnings before interest and
taxes), EBITDA (earnings before interest, taxes,
depreciation and amortisation), market share, brand
volume, ENP (economic net profit) and RIOC (return
on invested capital).
The larger operating companies report weekly on
production volumes. Profit and loss statements are
submitted monthly and reports on cash flow, balance
sheet and performance indicators are submitted
quarterly.
2.3 Dialogue with stakeholders
In maintaining its dialogue with the various target
groups which it addresses around the world,
Heineken pursues an active communication and
investor relations policy and provides full and accu
rate information. Heineken aims to publish both
financial and non-financial information on time and in
a consistent manner. This is done via a wide range of
communication media, including press releases,
presentations and webcasts via its website
(www.heinekeninternational.com), which guarantees
simultaneous access to the information.
The information which Heineken provides to share
holders includes current and historical share prices
and stock calculations, important facts and figures
and brokers' forecasts. The company also maintains
regular contact with analysts. On the basis of surveys
of existing shareholders, potential investors and
analysts, a number of presentations for institutional
investors and financial analysts are held each year, in
Amsterdam and in the main financial centres outside
the Netherlands.
Dozens of investor relations presentations were
given in 2003. The analysts' meeting held at the time
of publication of the full-year and interim results
were broadcast directly via the website. Heineken
also held presentations at many major international
conferences for institutional investors, the most
important of which were also relayed via the website.
In addition to the annual general meeting of share
holders, Heineken organised other activities in 2003
for private shareholders, most of whom are from the
Netherlands, including a number of presentations
and site visits. Heineken took part in several meetings
HEINEKEN N.V. SUSTAINABILITY REPORT 200 2-2 003
