The following ratios can be derived from this tabulation:
Other capital employed
Source and application of funds
According to the statement 'Source and application of
funds' shown on page 39 of this annual report, the Cash
flow (Group profit plus Depreciation) amounted to
N.fl. 314 million in 1980.
On balance, N.fl. 89 million was raised in Long-term
debt, which mainly relates to the N.fl. 100 million issued
in the form of 10% Euro-guilder notes, redeemable in
full in 1987.
N.fl. 327 million was invested in Plants and installations.
Of this figure, N.fl. 185 million related to the Nether
lands, including N.fl. 132 million at the Zoeterwoude
establishment and N.fl. 22 million at the brewery in
The investments in France amounted to N.fl. 53 million.
N.fl. 32 million was invested in Greece and N.fl. 16 mil
lion in Italy.
A net amount of N.fl. 54 million was involved in the ac
quisition of participations, as explained in further detail
on page 11 of this report.
The funds applied exceeded the funds received by
N.fl. 132 million, so that at the end of the financial year
there was a deficit of indebtedness to banker and hold
ings of cash and securities amounting to N.fl. 168 mil
As a production and marketing area Europe is of great
importance to our Group. Developments within the
European Community accordingly receive our full atten
tion. Numerous matters affect our Group either directly
At the end of the year under review the Labelling Direc
tive for Foodstuffs came into effect in the European
Community. In two years' time this directive will have to
be implemented by Member States. This will then re
present a further contribution to the free movement of
goods within the Community, which we consider to be
essential for the further strengthening of our position in
The production, packaging and selling of our drinks v™
in point of fact, have to take place where the optimum
results can be achieved from the angle of sound busi
ness management. Recent case law by the European
Court of Justice regarding the reciprocal recognition of
legal provisions concerning merchandise will probably
also make a considerable contribution towards this end.
At both community-wide and national level measures of a
more or less far-reaching nature are in course of pre
paration in order to reduce the flow of waste which is the
consequence, amongst other things, of drinks packag
ing. For environmental, energy and cost reasons we
recognize the necessity of restricting the use of packag
ing which cannot be re-used in any respect whatsoever,
in other words cannot be refilled, cannot be used as base
material for new packaging and similarly cannot be used
for the generation of energy.
A properly functioning system of recycling is in our opi
nion the key to the least detrimental solution, i.e. without
imposing unnecessary restrictions on the industry and as
far as possible meeting the wishes of the trade and^>°
In certain circumstances the objective can be achieved
with returnable packaging. This depends, however, on
the geographical situation and the nature of the distribu
tion network available. An enterprise such as Fleineken,
with many international markets and ramifications, will
only be able to operate to a limited extent with returnable
A purely national approach, however, may run the risk of
hampering trade within the European Community. We
presume the European Commission will take a serious
view of its task as guardian of the free movement of trade
- also in relation to third countries.
During the year under review the European brewing
industry, in consultation with the European Commission,
has considered the so-called beer supply contracts.