Prospects Heineken is continually engaged in strengthening its position world-wide. Amongst other things, this is done by the enlargement of market shares and the penetration of what are new markets for the enterprise. The strength of this process is partly determined by the possibilities which arise for the purchase of or acquisition of interests in existing breweries. In addition, opportunities are utilized for having our international beer brands produced under licence by third parties. In recent years large-scale investments have been made along these lines in the expansion of the enterprise. In particular, our activities in Europe have grown into an integrated brewery enterprise which occupies a prominent position in nearly all the big European markets and which furthermore is indisputably the world's largest beer ex porter. The profitability of the enterprise can only be optimum if all the individual operating companies have at their disposal the most up-to-date installations and the most efficient working methods. For this purpose, particularly in France and Spain, considerable investments will still have to be made in the next few years in conjunction with the previously mentioned measures in the sphere of produc tion. In the first instance the associated costs will affect the trend of earnings there. In the medium term, however, we view the course of affairs in Sogebra and El Aguila with confidence and these companies will also be able to develop satisfactorily as regards profitability. From the foregoing it is evident that the level of investments for the purpose of expansion and replacement will again remain high in 1986. We expect to invest some N.fl. 700 million in tangible fixed assets such as plant and installa tions as well as packaging material. The investments will be financed from the cash flow and the liquid resources available, which increased further early in 1986 through the issue of 6.5% Euro-guilder Notes in the amount of N.fl. 150 million. The numbers of personnel in the newly commenced financial year will to a certain extent be affected by the rationalization measures in a number of countries. We do not in fact expect any great changes in the total number of personnel. The sales possibilities of our enterprise can be favourably influenced by further economic growth, particularly in Europe, and the associated increase in private spending. The sharp decline in inflation, together with the ac companying downward pressure on the level of interest, are positive factors for the trend of earnings. The rate of the growth of profit in the next few years will be temporarily retarded, however, by the charges resulting from restruc turing and rationalization in several European countries. Amsterdam. March 20, 1986 Fleineken Van Schalk Van der Werf Van de Vijver Coebergh 33

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1985 | | pagina 30